Buy To Let
A buy to let mortgage is when you purchase a second property with the intention of letting it out to tenants. Many people want to increase the size of their property portfolio to take advantage of rising house prices and rental rates. Of course, while it can be a very lucrative endeavour, it’s important to make sure you invest in the right kind of property and secure a competitive mortgage deal. Property is seen as a stable investment alongside more volatile ventures such as the stock market. Landlords have a tangible asset, something they can see rather than a slip of paper telling them what miniscule proportion of a company they own. Ignite Financial Services could find the right deal for you.
Although there are risks involved with investing in a second property, the financial rewards can be great. Some people arrange buy to let mortgages to take advantage of the rental income the house will generate. Others are looking for capital gains, selling or remortgaging the property in a few years time. There is, however, no guarantee that house prices will continue to increase, so it’s important to make sure that you can handle any extra mortgage payments and arrange suitable mortgage protection and cover. You will also have to decide whether you want to manage it yourself or use a private letting agency to handle all of the tenancy issues.
The Financial Conduct Authority does not regulate some forms of Buy to Let.