Buy to let investment properties

Property is an excellent long-term investment, with the potential to offer good income and good growth. Capital growth in property in the past 25 years has exceeded just about any other field, particularly in the South East of the United Kingdom.

However, fluctuations in the market and the delays inevitable in selling a property make it an unsuitable choice for anyone needing short-term returns, or who might need to access the money tied up in a house quickly.

As working patterns change and people become more mobile, demand is high for rented property and short-term lets. In the last few years this gap in the market has been filled increasingly, not by big landlords, but by individuals buying one or more properties as an investment and letting them out to cover the cost of the loan. Many people invest in a buy to let property as a pension. The rent each month can be used to supplement their retirement income, or the property can be sold and the proceeds used as a nest-egg.

Some lenders now offer tailor-made packages for just this market. You can now get a buy to let mortgage at interest rates to suit almost any circumstances. These include fixed rate mortgages, discount mortgages and tracker mortgage deals – and are often highly flexible. The difference between a buy to let mortgage and a standard home loan is that most lenders won't just take your salary into account when assessing eligibility. Potential rental income from the property is often also included in their assessment.

Industry experts predict a solid future for buy to let and say with the days of rocketing short-term capital growth are gone, long-term investors are set to benefit. But while it's not quite the hot property it once was, investors looking for steady growth are returning to the buy to let market.

Property auctions can help you to successfully invest in buy to let property, with auction property being key to successful portfolio development. 

Call our finance partner, John Charcol on 0845 413 1404 to discuss the buy to let mortgage options that are available. Alternatively, click here to view the best buy to let deals currently on the market.