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Property investment has always has been popular and was used by many investors either to diversify their investment portfolio or as an alternative to stocks and shares.

In the past few years rapidly growing house prices and availability of cheap buy to let mortgages Hohave attracted many new investors and many amateur landlords have entered the buy to let market.

Buy to let mortgages have been on the market for quite a long time; however terms they were offered on initially were not very attractive and didn’t attract attention of many people apart from professional landlords. However in the past decade it all changed. As more people were willing to purchase buy to let property, more lenders wanted to offer buy to let mortgages on competitive terms and in a matter of just a few years buy to let mortgage rates have almost levelled with those of residential.

Many argue that they to let has now past and the golden era of buy to lets has now passed, but for some reason not many professional landlords are rushing to get rid of their buy to lets.

If chosen correctly buy to let property should be self sufficient and appreciate in value over the years. Buy to let mortgage providers normally expect that rental income will cover buy to let mortgage payments and other basic expenses such as building insurance. They normally expect rental income to cover buy to let mortgage payments by 125%.

When buying a buy to let property for the first time you will need to take into account few initial set up costs as you would with your normal house purchase such as legal conveyancing, mortgage arrangement costs and  possibly some decorating. You will need to bear in mind that there could be periods of time when your property will not be let out and you will have to maintain mortgage payments. Think how many months you will be able to do it without too much pressure?

For this reason , when applying for a buy to let mortgage you will be expected to demonstrate that you have a good monthly income from other sources such as employment. Some lenders expect you to have at least £20,000 a year, while others will expect as much as £35,000.

If you have a large house with multiple tenancies or quite a few buy to let properties, you may need to find that you will need a commercial buy to let mortgage as not every lender is happy to lend money.