Becoming a landlord isn’t exactly money for nothing. But there’s little more satisfying than reaping the rewards of your buy-to-let mortgage investment. Month after month, you see your nest egg grow. And, providing you’ve laid the right foundations, it will do so until you call time.
To many, earning a living this way is nothing more than a pipe dream. Yet investment in the property market is a centuries-old practice. Today, contractors are in a better position than most to make use of market conditions.
So how can you make this dream a reality?
Rarely has there been a time when Buy-to-Let has appealed to even the more modest earners as it does now. It’s not difficult to see why. The benefits and opportunities stand out:
- the long term capital gain of the properties themselves;
- the regular monthly income from eager tenants;
- young couples still struggle to afford mortgages, providing a buoyant market.
There are, of course, deductions and associated insurance costs. Even so, becoming a landlord appeals to many looking for a safe investment in their future.
To safeguard that investment, contractors must set up their buy-to-let mortgage the right way. Providing that they secure and gear it so, their mortgage can prove to be the base of a substantial earner.
Whether it’s topping up your income now or your pension, buy-to-let may seem like money for old rope. Almost, but not quite.
You can’t take gaining access to the capital for granted
As we alluded, buying a property with the sole intention of renting it out is not all plain sailing. Taxes can seem a minefield; gaining access to funding can be the heavy boot to detonate those mines.
Mortgage lenders are also changing their lending criteria on a whim. Underwriters, too, are introducing more complex calculations into the whole process.
Proving projected property rental income can be risky without a client in the wings. Yet those newer to the investment game may struggle to find that proof.
What’s more, it’s a major factor in many lenders’ risk assessments. Plus, there are huge differences in the weight lenders place on that proof.
So, yes: buy-to-let does represent a fantastic way of generating long term passive income. But, for the above reasons and more it’s not the most popular investment choice. This makes taking expert advice about the mortgage deals on offer all the more essential.
Buy to let mortgage options for contractors
The road to securing successful buy-to-let mortgages is one less travelled. There are also many junctions along the way. Each could provide better or worse results, depending upon your circumstances.
These are just some of the criteria contractors may have to face to complete their journey:
- lenders assess your affordability based on expected property rentals;
- choosing between fixed and tracker mortgage rates, both of which may be available;
- to borrow in your own name or as part of a group;
- choose a special purpose vehicle (limited company) mortgage;
- make various choices on how to let your property;
- opt for a mortgage from anywhere between £35,000 to £1m (subject to availability);
- transfer your existing BTL mortgage to another BTL property;
- Let-to-Buy, renting your existing home and buying a new property to live in.
Don’t give up on your investent dream; talk to us today!
With so many different options available, it’s hard to know which one to choose. And to be honest, we don’t expect you, or anyone, to know which is the right vehicle for you.
That’s where you benefit from the experience of a battle-hardened mortgage broker like us.
Our first priority is to secure you the most competitive buy-to-let mortgage. Our experienced mortgage advisers can tailor that search to your unique circumstances.
Then this is where the Contractor Mortgages® service makes a difference; we also offer:
- a flat broker fee, no hidden charges;
- our specialist knowledge in buy to let mortgages for contractors;
- as independent brokers, access to the whole BTL mortgage market;
- an efficient turnaround from application to transfer of funds;
- inclusive insurance such as mortgage protection & critical illness cover.
Our expert advisors will find you the most suitable and cost-effective mortgage deals. Not only the term, but the monthly repayments and size of deposit, too.
This will ensure that your property business has the best possible start. And that’s how you must view buy-to-let: as a business investment.
We make the whole process simple and hassle-free for you. That’s true irrespective of your trading structure and payment mechanism. With our help, you could become a landlord a lot sooner than you think.
First, enter your contact details and the best time to get in touch with you into our call back form. We’ll then contact you to discuss making the dream of owning a buy-to-let property a reality. You are that close to laying the cornerstone of your empire.