It doesn’t matter whether you are buying a second property with the intentions of just having it as a holiday home, or if you are going into it with the intention of turning it in to a holiday buy to let business, when it comes to getting the best second property mortgage deals you are going to have to go about it the right way.
Good second property deals can be found; they do exist but unless you have the expertise and know where to look you could spend a vast amount of time looking in the wrong places. There is a much easier option when it comes to getting the best second property mortgage deals and this is to go with an expert in the business, a specialist broker can save you a lot of time, money and stress simply because they know where to look when it comes to getting the best deal.
There is a lot for you to consider when it comes to buying a second home and the mortgage for your new property is just one of them. Mortgage taken out for a second home can vary vastly from the mortgage you took for your home. When it comes to the mortgage then you will have to decide if you are going into to the buy to let business, a mortgage for the buy to let business goes on different factors.
For example you will have to be able to prove that the property meets the requirements for a buy to let which means it should be fully furnished and be available for renting for a period of 140 days pout of the year. You will also have to prove to the lender that you will be able to drag in around 130% of the mortgage from your tenants. Of course your broker will have discussed this and will known what they are looking for when it comes to getting the best second property deals together for your consideration.
When it comes to getting the cheapest deal when it comes to getting the cheapest deal for your mortgage you should of course have given some consideration to the location of the property, if the lender doesn’t think that the location is a choice then they will be reluctant in giving you a mortgage. One of the rules is that you expect to bring in an income of around 130% of the mortgage in renting fees, so when it comes down to getting the best second property mortgage deals then choose a specialist broker.
By: Sean Horton
Posts Tagged ‘Property Mortgage’
Are You Thinking Of Taking Out A Second Property Mortgage?
December 23rd, 2009
Buying a second property with the idea of letting it can benefit you in two major ways. The first of course is that if you have done your homework correctly then it can bring in a substantial income. The second is that there is a long term accumulation of capital growth associated with them.
However when it comes to taking out a second property mortgage there are many pitfalls that you can come across and you need to have some knowledge on the subject if you are to avoid stumbling into one of them.
Second property mortgages generally aren’t as simple to arrange as the normal first mortgage and many factors have to be given some serious consideration if you are to get off on the right footing. While you can search for and deal with your second property mortgage yourself, this isn’t the advisable way to go or the best. The best way to go is by choosing a specialist broker, this ensures that you will get the best deal that is currently available as the broker does all the hard work of searching for you.
However you should also bear in mind that buying a second property with the intention of turning it into an income is not easy. When you consider this option it is often far more risky than other investments, it can be very time consuming and is complicated even with the help of a mortgage broker. But on saying this it can be a very rewarding experience financially over the long term, providing you are willing to wait to start reaping the benefits.
When taking out a second property mortgage one of the biggest considerations that you will have to take into account is your primary objective for the property. When it comes to letting the property you will have to know if the main objective is for capital growth or income. In plain English this means are you seeking to get an income on a month to month basis or looking to gain from increased equity over a period of time?
You should have course taken into consideration the fact that besides the monthly mortgage repayments you will also have other out goings to pay, additional costs include the upkeep of the property, legal insurance and insurance such as contents and building and replacing furnishings and appliances.
As you can see owning a second property to gain an income is complex and this is more than enough reason why you should choose a specialist broker to take care of the mortgage part of the venture.
By: Sean Horton