Finding the Right Buy to Let Mortgage
There is a vast array of mortgages available and the variation can be very confusing. The Financial Services Authority (FSA) is the independent watchdog set up by government to regulate financial services and protect the rights of the public. It provides a free, plain English Guide to Mortgages which can be obtained by writing to them at 25 The North Colonnade, Canary Wharf, London E14 5HS (telephone 0845 606 1234 or visit www.fsa.gov.uk).
Once you have decided the best type of mortgage, you can start searching for one that provides the best value. The internet is an easy way of obtaining up-to-date information and you can access thousands of loans offered by lenders throughout the country. If you are able to let your computer do the walking, try these sites:
www.moneysupermarket.com for advice on the best-buy mortgage in various categories. Their Rate Alert system updates you by e-mail when a better interest-rated mortgage enters the market.
www.moneyextra.com to search through over 4,000 different mortgages.
www.yourmortgage.co.uk supplies mortgage information and current 'best buy' details with advice for the self-employed.
www.mortgagesexposed.com is a quite extraordinary website offering a free on-line or downloadable book covering every aspect of the subject.
One alternative to using the internet is to consult a mortgage broker. There are mortgages not generally advertised and better deals that a broker has access to. They will identify a selection that best meets your circumstances. Brokers charge for their services so find out what fees are involved before employing one. A list of mortgage brokers can be found in Yellow Pages or consult your accountant who may be able to recommend a local one to you.
How To Books have published Save Thousands Buying Your Home by Maxwell Hodson. This is an excellent reference and guide for anyone considering a property purchase. Alongside useful money-saving information, it offers the reader realistic, sound advice on how to obtain the lowest mortgage and arrange finances so you get the best deal.
Before accepting a mortgage, obtain written confirmation from the lender that letting is permitted. Some completely prohibit renting. Others may have strict rules about the category of tenant, the type of tenancy agreement and the method of management. There are also often mandatory fees payable to mortgage companies for granting a tenancy and these are best identified in advance so you can include them in any profit forecast.
