Ambergate Independent Financial Services

The basics

Buy-to-let is a long term investment, given the start-up costs and the fact that property cannot be bought and sold quickly.

The first step is getting the right mortgage. If you already have a residential mortgage on your home and want another mortgage on a second property, many lenders will limit the amount of borrowing to a maximum of 85% of the value of the property you are buying.

You need to remember that there are many additional costs involved, including stamp duty, surveyor’s fees and legal expenses approx. 5%. (Approx. 7% when the purchase price is over £250,000).

Hot spots

Look for towns and cities that have a good mix of economic activity and chimney pots. Places that have a university, science park or large company headquarters, or new build city centre apartments with an element of character are favourable.