The Pros and Cons of a Surrey Buy-to-Let Mortgage

Thousands of investors buy a property for the purpose of renting out in order to make easy money and save money for other investments. While this seems a really feasible way to make money, there are certain things that you need to take into consideration. If you don’t have enough capital to invest in a new property that you want to rent out, you will need a buy-to-let mortgage. However, getting a Surrey buy-to-let mortgage is not as easy as getting a standard residential mortgage. Before you dive in, take a look at some of the advantages & disadvantages that are associated with a buy-to-let mortgage.

How Can a Buy-To-Let Mortgage Prove Beneficial For You?

Let’s take a look at some of the positive aspects of owning a property with a buy-to-let mortgage:

1.     Income Generation

If your property is rented at all times and the tenants pay their rent without any hassles, then you will have nothing to worry about. You will easily get your hands on extra income from the property that you have rented. However, make sure that you also take into consideration the maintenance cost of the property before applying for the mortgage.

2.     Increase in the Capital

Investing in property always turns out to be beneficial, especially when talking about its prices in a few years down the line. While there are chances that the price may go down, they are minimal. Therefore, it’s a good reason for investing in such a property.

3.     More Demand

Owing to strict mortgage criteria and lack of affordable housing, more and more people are looking forward to renting a property rather than buying one. Therefore, it serves a good opportunity for the landlord who has bought their properties with the help of Surrey Buy-to-let mortgage.

What to Be Cautious of When Opting for a Buy-To-Let Mortgage?

1.     Stamp Duty

The investors who have more than one property in their portfolio and want to apply for a buy-to-let mortgage for a new property, special attention should be given to the stamp. In April 2016, the government imposed a 3% surcharge for additional property purchase.

2.     Non-occupancy

There is a chance that your property might be unoccupied for some period of time and lead to rental voids. This factor needs to be considered and make sure that you factor this in your budget.

Contact UK & International Mortgages

If you need more information about buy-to-let mortgages before investing in a property, the experts at UK & International Mortgages are available to help you out at all times. Since London continues to be a hub for both domestic and international investors, the company provides London mortgages to all the eligible investors.

With over 20 years of experience, the company has been offering transparent and best services for all your investment needs. You can call them 24X7 to get your queries resolved and take an informed decision.