Buy to let mortgages have become available in the United Kingdom in the late 90s. A buy-to-let mortgage is a product used by property investors to borrow funds to be used to a property with a view to let it out it to tenants.
For owner-occupied mortgages, mortgage brokers determine the amount an applicant can borrow based on their annual income. It is not so for a buy-to-let mortgage.
Usually interest rates offered for buy to let mortgages are quite similar to regular mortgages, but are generally higher and come with higher fees. lenders believe that a buy-to-let mortgage carries a higher risk than a regular mortgage. This risk is reflected in the rates on offer and fees.
House prices have hugely increased in the United Kingdom during the last five years. The result has been a strong development of the rental market as many people cannot afford the deposit required for a regular mortgage. This has made buy-to-let very attractive to investors.
It is common at the moment for buy-to-let properties to be let unfurnished, also known as “part furnished”, as buy-to-let properties virtually always include white goods, fitted bathroom, curtains and carpets. Very central London is an exception where furnished buy-to-let properties are more likely to let because of the large proportion of business tenants in the area.
For a professional buy-to-let landlord, this makes life a lot easier. All you need to do to prepare a property for new tenants is at most a bit of painting and carpeting work. When it comes to choose carpets, paint colours and curtains for a buy-to-let property, it is important to choose a neutral style to allow tenants to personalise the property with their own soft furnishings.
This also makes life a lot easier for property landlords when it comes to comply with safety regulations. A furnished letting property will usually include cushions, mattresses and pillows . Because these soft furnishings are provided with the property, it is the landlord responsibility to ensure that they are in compliance with the various safety regulations in place.
You should not that in all cases the landlord is fully responsible for the safety of gas and electrical installations as well as appliances supplied with the property. This needs to be ensured via regular checks and proper record keeping. It comes without saying that rental properties, like any other property, ought to have fire alarms installed.
These regulations are usually quite complex and updated regularly. Letting agents are usually well prepared to understand and ensure compliance with these safety regulations. Often safety compliance is easy to attain, but for a new property investor this is something they must become familiar with from the moment they go ahead and put a property on the market.
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