With the price of houses so low, and a bargain to be found in many areas, buying a property to rent out has become very popular. The prospect of become a Landlord can be a daunting one and the first thing to remember is that this type of purchase should be viewed as a long term investment, usually 10 – 15 years and not a short term project for overnight profit.

Buy To Let mortgages are not normally assessed on your income, but the rental yield of the property as assessed by the mortgage surveyor. Some lenders may require you to have a minimum income of £25,000 for overall affordability but not all.

A deposit of 20%-25% is usual and the best price range to yield the best return is between £80,000 and £120,000. Above this, the rental income may not be sufficient for the lenders purposes.

First Time Landlords

Some lenders do not lend to first time landlords or first time buyers on buy to let properties, so the options may be slightly restricted.

For a first time landlord, we would recommend that you use a letting agent. Letting agents will check references and oversee the property letting and provide a good point of contact in the case of any problems, complaints or repairs. They do charge a fee for their services, usually around 10% of the rental income.

You should also take advise from an accountant with regard to your tax position.

Your Home may be repossessed if you do not keep up the repayments on a mortgage.