Adopt a prudent approach based on the market conditions

Posted under Advice by Alan

Buy to let investors should adopt a prudent approach based on the market conditions. Even as they think long-term, they should take into account prevailing circumstances.

Check whether you are charging market rent or it is time for you to consider some increase (falling within the constraints of your tenancy agreements, needless to say.

If you have not remortgaged for some period of time, you may be on the standard variable rate of your lender and paying more interest than you are required to spend on your mortgage payments. In such a scenario, you may consider switching deals. See if you can get an extra room in a property, thus increasing your rental income.

Buy to let investors should not ever disregard high arrangement fees. If one goes through any particular mortgage ‘best buy’ table, one would notice that all the leading ‘buy to let’ rates have either high percentage fees or flat rates.

Depending on the size of your mortgage, it might be sensible to pay a seemingly high fee rather than the fee – calculated as a percentage of the loan. Taking this into account, evaluate any list of mortgage best buys.