If you need or want a mortgage, then you can easily get a mortgage that is not the best one for you. Mortgages are often missold by sellers claiming to be experts. One day they all push Endowment mortgages, then Repayment mortgages or Low Start mortgages or Overpayment mortgages or Fixed Rate mortgages or Offset mortgages - and each type will also have different interest rates available.

photo credit: TheTruthAbout…

For any one kind of mortgage, lower interest rates are best of course. But different kinds of mortgage may best suit different people, though they may not have the same interest rates. For some a mortgage is the only way they can afford to buy a property, but for some a mortgage is profitable cheap money costing maybe 5% net to free-up other money for investing at a higher return maybe 10% net.

Good mortgage calculators can help you choose the best mortgage for you, but many or the mortgage calculators available are little help. But first let us look at what kind of mortgage may best suit you ;

Savings and income small. A normal Repayment mortgage should be best if you can get one for the property that you want and you can afford the payments. (Some sellers may help on a deposit or furnishing, or offer Shared Ownership or Homeown schemes.) Otherwise, if your income is likely to be rising then a Low Start mortgage might allow you to buy a better property or to have lower payments. As an alternative to a low start mortgage, a young new graduate might reasonably consider a permanently low payment endowment mortgage linked to a pension, though at the end of it gambling whether some net lump sum may be collected or may be owed.

Savings small and income large. A normal Repayment mortgage should be best if you can get one for the property that you want. (Some sellers may help on a deposit or furnishing.) An Overpayment mortgage will be better if you prefer to pay off your mortgage early, but an Offset mortgage linked to your current account could help with that more cheaply.

Savings large and income small. A smaller Repayment mortgage may be best, but if you can invest your money at a better net return than the mortgage interest rate that you can get then you should get the biggest Repayment mortgage that your income can reasonably afford.

Savings and income large. If you can buy the property you want without a mortgage, then only get a mortgage if you can invest your money at a better net return than the mortgage interest rate that you can get - and in that case get the biggest Repayment mortgage you can afford.

Initial mortgage payments must be affordable for you, leaving enough of you income for normal bills and expenses. (If your income is small then a mortgage taking 30% of your income may be difficult for you, but if your income is larger then 50% of your income may not be difficult for you.)

Mortgage payments in later years. The actual money cost of a normal ‘variable’ mortgage is fixed for the life of a mortgage IF interest rates do not change, so that the real cost tends to fall in later years. BUT if interest rates rise then the money cost of your mortgage could rise a lot for a year or two and make it difficult to keep up payments. Many partly ‘insure’ against this by taking a slightly dearer mortgage with the first few years held at a fixed interest rate. And if sickness or unemployment might make paying a mortgage difficult, then this can be insured against.

If you want to buy a property as an investment to rent it out, then you may need a commercial Buy To Let mortgage needing a deposit of 15% or more unless you can find a seller offering a deal that helps with that. But if you are already a landlord owning multiple properties, then you may be better suited with a specialist lending arrangement rather than individual mortgages.

 Vincent Wilmot currently lives in Grimsby UK and has several
interesting websites including Buy To Let

In the not so distant past the term “buy to let commercial mortgage” would have been synonymous with “residential commercial mortgage”. This is because many lenders and brokers regarded buy to let mortgages as commercial propositions.

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Many property investors now consider a good mix of residential and commercial property to be a requirement of a well managed portfolio. This change in demand has forced the market to adapt, buy to let commercial mortgages are now one of the fastest areas of commercial lending.
Looking across the broad spectrum of commercial investment property, the main types of buy to let commercial mortgage products can be defined generally under the headings ‘blue chip’, ‘premium’, ’secondary’ and ’speculative’.
Blue Chip investments have all the qualities a lender would hope to see in a commercial deal. The proposition has to have good quality property in the right location and stable tenants on a solid lease. This quality of commercial investment acts as a double edged sword though. High demand from institutional investors can inflate the prices, which in turn can reduce rental yields causing potential problems for investors supporting higher loan-to-value buy to let commercial mortgages.
The step down from the blue chip investment would be the “premium” investment. One would expect the premium property to perhaps have a tenant without the credentials of a blue chip property. The property itself would most likely still be of the highest standard and in a good location. Because these investments are not so desirable to the institutional investors the prices are a better reflection of their true value. This lower capital cost makes the proposition attractive to a wider variety of lenders.
When it comes to ‘Premium’ buy to let commercial mortgages lenders begin to become much more focused on the experience and financial standing of the investor. For example, will the borrowing costs still be paid in the event of the tenant defaulting? this is particularly important and the valuer may well be asked to comment on the likelihood or otherwise of finding good tenants quickly and easily. Due to this perception of risk, a lender will also be interested in verifying the stability and reliability of the tenant(s).
Not surprisingly, speculative investments are the hardest to fund. Very often the property is not pre-let, may be in need of repair or refurbishment and may not even be in a good location. For these reasons a lender will expect the borrower to have the means to support the buy to let commercial mortgage from Day One - and evidence of this will usually be required.
Whilst competition within the “secondary” investment market is helping to bring prices of a buy to let commercial mortgage down the speculative market is still very selective. Blue Chip investments tend to be funded by the banks and building societies who reward good investments with the lowest interest rates and most favourable terms.
Commercial property investment represents a fantastic opportunity for small and large investors. As it becomes easier to arrange a buy to let commercial mortgage it is inevitable that this market will grow.

Spectrum Business Finance are buy to let commercial mortgage specialists and have been arranging for commercial property finance for over 5 years. When you talk to an experienced commercial finance broker you can be sure to get the right deal for your circumstances.

Being a landlord may be a very sound investment especially with rising property values - yet property investment can be risky and lenders will give you a loan for a bad scheme. The wise Buy To Let investor, before buying property or getting mortgages on any Buy To Let idea, gets expert financial advice - often using a good property investment calculator and often low cost.

The two main property investment choices.

There are two main choices in property investment, buy a house to let when the maximum UK mortgage will be at most 85% of valuation, or let your own house and buy yourself a new house when you may get 100%. But certainly, before you buy a property to let or decide to rent your own house and buy a replacement for yourself in England, you should get an expert estimate of your likely profit or likely loss, and also get an estimate of how big a rent and mortgage loan you should be able to get ! Even if your Buy to Let idea is at an early stage, with no actual property in mind yet, you should be able to get good advice on your approximate estimated ballpark figures.

Buy To Let Mortgages.

Before you make an offer or bid for a property, you may want to apply for a mortgage - lenders will often not need to know what property you want to buy but may want to know what rent you hope to get. For your Buy To Let property purchase a 10% cheque will normally do for a deposit, but you will get at most an 85% mortgage so you will usually need another 5% at completion. However, you may find some sellers prepared to cover that 5%. If you want speed, you can get a surveyor to go with you when you view a property - but if you need a mortgage then the lender may want their own survey done after also. But be warned that many selling good Buy To Let mortgages will give you dangerously poor advice on the wisdom of your property purchase - for that you really need independent advice !

Letting property that you already own.

If you are thinking of renting out property that you already own, or if you are now letting property, then it may be wise to get an expert report on how good a financial property investment it is. You are investing the value of your property, and you should be sure that it is making reasonable profit. Your current property value estimates, and current mortgage loan amounts will allow an expert appraisal including rent level advice and taxation advice.

Do be the wise investor.

If you are wise then do not consider buying property to rent out, until you get an expert estimate of your likely profit, or likely loss, and expert advice !Major UK lenders like the big banks have said that they think all investors thinking of buying property to rent, should get an expert financial appraisal before seeking a Buy to Let investment mortgage - as does the Council of Mortgage Lenders guide “Buying to Let”. Many lenders will not calculate your Buy to Let mortgage on your income, property price or value, but on your expected rent as do good mortgage calculators. Some lenders may use your income, or part rent and part income, but lenders can give you a Buy to Let mortgage on a project likely to make a loss and which you cannot afford, and letting agencies can land you with a rent level that is too high or too low, so you do really need expert investment advice first - and with luck that need cost little !

Vincent Wilmot currently lives in Grimsby UK and hasseveral interesting
websites including Buy To Let

Letting property is an increasingly profitable business that allows those with the initial capital to make a property work for them without having to put in a great deal of effort. There are however a variety of essential considerations that must be made before putting a property up for let. Of these considerations the presentation of a property is vitally important. With high presentation levels it will be possible for landlords to achieve a higher rental income. Hopefully the following pointers will help landlords receive more rent; it may mean putting effort in at the start, but any effort will be ultimately worthwhile.

Firstly, to make your let property more appealing the use of neutral colours is highly advisable. Most tenants will be put off by a bright orange wall; instead, using creams and plain whites is the best course of action. With neutral colouration however, be careful not to go too pristine, if the walls are too white, it will be difficult to keep the property clean.

If your property to let will be listed as a furnished property it is essential to use high quality items. Naturally carpets and curtains should be of a high quality and hard wearing. This means they will last longer and will last through the tenancy of more than one tenant. Easy to clean surfaces are also advisable, laminate flooring is usually the tenants most preferable material as it is easy to keep clean and any spillages can be rapidly mopped up.

If your property to let is to be listed as unfurnished there are a number of minimum items that should be included. A cooker is vital although items such as fridge freezers, washing machines will normally be included. These items should be checked by an electrician to ensure that they are in safe working order and pose no threat to tenants.

If you are pursuing higher rents for your let, it is advisable to create a spacious kitchen with plenty of cupboard space as this will entice renters. Additionally the kitchen should be modern and contemporarily styled as this will once again, appeal to tenants.

As well as the importance of the kitchen, a modern bathroom will also secure a higher rental price. A shower is a minimum requirement although many let properties include a bath. The bathroom cannot be underestimated as one of the most important rooms in any let property.

In terms of heating you should ensure that the system has a thermostat and is efficient enough to keep the property comfortable in the winter. Renters should check the efficiency of the heating as poor insulation will result in higher heating bills.

The overall style of the let property should be clean and comfortable. Try to de-clutter furnished properties as more space is appealing to tenants. In addition, at the end of each tenancy it is important to have professional cleaning services give the property a deep clean.

If the let property has gardens more rent will be achievable if they are well maintained. This means cutting the grass, making sure hedges and shrubs are clipped and the borders are neat and tidy. It may even be worth putting some gardening equipment in the property so tenants can maintain the gardens themselves. As part of this, any outbuildings such as sheds and garages should be cleared of rubbish.

Hopefully this advice will give landlords the best chance of receiving high rent when putting their property up for let. If the effort is put in early on during a tenancy it is possible to reap the benefits with the minimum of fuss. Strike up a relationship with the tenants and you should have a hassle free way to make money.

About the Author
Real estate expert Thomas Pretty looks into how landlords can prepare their property to let and gain the highest rental income.
Article Source: Content for Reprint

With the high price of property currently it is unsurprising that so many people are instead deciding to look at let properties as a more affordable option. As a tenant however it is important to be aware of your rights, all renters have certain rights that come hand in hand with a rental property. By taking note of your rights you will be able to avoid the few unscrupulous letting agents and landlords still out there.

When you are looking at let properties, no matter what the reason it is important to realise that essentially you are paying for a service, making sure you get value for money is vital. Handing over huge amounts of money at the end of each month and still being disappointed with the situation is heart wrenching. Ultimately it is a home, and you should be happy with this home; while some may find it hard to settle into a rented house or flat, for the sake of your lifestyle it is essential that you do.

Looking at the endless internet sites and newspaper handouts advertising property to let can be a time consuming and ultimately unrewarding task. Finding a property you like then being told it has already been taken is a heartbreaking feeling, although not an uncommon one. This is when the services of a letting agent can be especially useful. Many see the use of an agency as the easy way out of this difficult task, the easy way out however will always end up costing you more.

Letting agency rates do differ dramatically, the fees can range from around twenty five to one hundred and fifty pounds. What you are paying for is not purely them finding you a property to let but all of the administrative tasks related to renting. Normally an agency will deal with producing references to the landlord, taking deposits and producing the legal documentation such as contracts. In addition, if you want a specific house or flat reserved, a holding fee will usually be charged, although this is usually put towards your first month ’s rent unless you pull out of the deal.

Contracts are of especial importance; termed as the tenancy agreement in the trade it is a vital constituent in securing a property to let. The agreement is a legally binding contract between yourself and the landlord and contains information such as the length of the letting period, the cost of the rent, the date the rent is needed and both parties’ responsibilities in terms of the condition of the property. While you may not have legal advice, be sure to read the agreement carefully before you sign.

Once you have moved into the let property it is the landlord ’s responsibility to ensure that gas and electricity fittings are all safe and in good working order. Under the law it is their responsibility to ensure that gas appliances are checked by a registered CORGI technician in any twelve month period. The records of these checks should also be available to you, detailing any defects or work that has been performed.

When you are settled it is important to understand he rights of the landlord in terms of entry to the property. If there is an emergency situation the landlord is allowed to enter immediately but at any other times they must give twenty four hours notice to enter the property.

Hopefully this article has gone some of the way to detailing the rights and processes involved with renting. With the advice given it should be possible to find yourself the perfect letting property and have years of blissful living.

About the Author

Real estate expert Thomas Pretty looks into the property to let market and the rights and responsibilities of tenants.

Article Source: Content for Reprint

Writing an article on the state of the Buy To Let (BTL) sector in late August 08 for a September the 1st deadline is always a challenge as many property professionals take an extended holiday break (your Editor included) in July and August. And of course summer 2008 has seen home owners, landlords and lenders all take a collective back seat as they wait for outcome of the ill-judged Treasury leak about potential changes to Stamp Duty.

Arguably many BTL properties fall below the £125,000 threshold, so would not be impacted, but the sale of some of these properties may be held up as buyers moving up the property ladder await any reduction in Stamp Duty on higher value properties. The potential impact of this political gaff should not be underestimated since it came at just the moment when investors and lenders were finding common ground and activity was starting to pick up.

Putting that problem to one side for the moment there are good reasons to believe that the BTL sector is weathering the storm:

• Tenant Demand

Evidence of good rental growth across the UK can be found not only in the latest RICS Lettings Survey with a headline of “Lettings market shines bright in housing gloom” but also in Paragon’s Buy To Let Index for July where yields across the UK are 6.4% with average growth in the last year of 9.3%. Additional demand is being driven by the reduced availability of mortgages at 100% or above for first time buyers who will need to rent until they can save up the necessary deposit and with higher interest rates being charged on borrowing at thee 95% level , it may be more expensive to pay a mortgage than rent for the time being.

• Mortgage Availability

One year on from the credit crunch, the BTL sector has fewer lenders with tighter credit criteria and risk based pricing encouraging landlords to invest more capital in return for better interest rates. Pricing as low as 5.09% for a 2 year fix at 60% loan to value with higher pricing is applied by those lenders still willing to lend to 85% but with increasing dependency on retail deposits to fund new lending the cost is reflected with rates more in the range 6.5% to 7.5%.

• Mortgage Funding

Current funding is based on the known performance of the existing BTL mortgage book and the recently released CML figures look relatively benign with only 1.1% of loans in arrears over 90 days compared to the broader market figure of 1.33% but still up from 0.73% at the end of 2007. Any significant deterioration would cause lenders to re-trench further at a time when BTL landlords are probably the best hope for the property market absorbing the CML predicted 28,000 repossessions in the second half of the year.

• Preferred Property Sectors

The new homes sector had always been popular with investors in a rising market - where there was no property chain and the opportunity to buy off plan with completion up to eighteen months away held out the prospect of capital appreciation for little risk in the early years of the new millennium. By early 2007 some developers were creating artificial incentives to lure in investors leading to concerns over the true value of developments where upwards of 40% of the units were sold to investors. This has led to rental problems and geographical concentration risk and lenders have placed a 75% LTV restriction and full transparency on the component parts of the transaction. This is bound to impact the house building sector and the results of Taylor Wimpey on 27 August announcing a 96% fall in pre-tax profits and exceptional items of a further £1.5Bn must reflect some of these issues. Effectively the development of sites has mostly ceased as builders concentrate on selling existing stock before developing subsequent phases. Whilst house prices have eased there are not sufficiently large volumes of properties being sold to suggest a collapse of the broader market.

• Market Confidence

Paragon’s July Trends Review reveals that investor sentiment towards acquiring further property remains strong with twice as many landlords looking to add properties than intending to sell. This is driven by a belief that they can secure a lower price as well as being high tenant demand being a key factor for 39.3% of them.

• Feel good Factor

There is one additional confidence element that impacts the whole country and that is the somewhat unexpected “feel good factor” that has been created by the well deserved success of Team GB in Bejing. Not only has it dominated the headlines and pushed away the doom and gloom headlines on the property market and economy at large but has created a genuine interest in London 2012. When France won the Football World Cup in 2006 the GDP growth in the next quarter was 0.5% above the predicted rate. The benefit to the UK may last sufficiently long enough for other potential positive measures to show through such as a Base Rate reduction of 0.25% in early November or, heaven forbid, the Government untangling the Stamp Duty fiasco with a stepped aligned on price bands and a raising of the “zero” band to £250,000 - is that too much to hope for ?

About the Author
Micheal Aglony works with http://www.mortgagesforbusiness.co.uk - buy to let mortgage specialists. Article Source: http://EzineArticles.com/?expert=Michael_Aglony

Property appears to be a great way to make a lot of money, here are some tips on how to get your property rented out as quickly as possible.

Get a Good Property
If you are buying a property to rent, choose one with square or rectangular rooms. Oddly shaped rooms can make a property feel small or cluttered. The key bait for finding a tenant is en suite with a decent living space, even if bedrooms are a little on the small side.

Choose a good letting agent
Selecting the right agent is essential if you want to rent out your property quickly. Find out which local letting agent generates the most enquiries from potential tenants, and consider agents with a good high street location, or good online marketing presence. Search online for properties such as yours, and the top hits in search engines are probably the best bet since likely tenants are likely to be using the same search terms as you. Make sure the agent you pick is established and rents out property on a regular basis, thus securing a stream of new tenants.

Interior Design
Decent furniture and a sophisticated interior designed look is a great way of securing higher rent and a speedy let. Furniture and interior design can make a big difference, and attract more favourable tenants who intend to look after the property.
Many landlords ruin the return on their investment by skimping on furnishings and fittings, but these can greatly increase the return. Consider employing an interior designer or specialist furniture supplier who can give your property a sophisticated look. It ’s worth paying more for things like three piece suites and dining tables, since these are core pieces of furniture. Consider hiring a photographer to make sure your property looks truly amazing, photos are a great tool to set your property apart from the pack.

Keep in touch with your agent
Keep in regular contact with your letting agent and enquire about the number of viewings. If your property is slow to rent it is very important that you ask the agent to confirm any problems with the property as soon as possible so you can address those issues. Discuss the problems with the agent and decrease the rent if this is the best option. Remember it ’s better to rent quickly at a reduced rate than lose months worth of rent while you struggle to find a tenant.

Say No to Greed
Many landlords overprice properties and try to hold out for months to find a tenant willing to pay. If your rent is unrealistic you will not rent the property no matter how long you wait. Price just below the market as waiting around losing prospective rent for months before realising you need to drop the rent will mean a sever loss of income.

Make Sure They Pay
Accept rent payments only on a standing order basis, as this reduces hassle later chasing around cash and cheques. Check the bank account and make sure the standing orders go in, as soon as you get a late payment, advise them in writing that you are not happy with the situation. Make an issue of the late payment and ask them not to repeat it. Ask for six weeks deposit instead of four, as tenants tend to withhold their last months rent as a way of getting their deposit back. This way you at least have 2 weeks worth of deposit available to compensate for property damage.

About the Author
Buy to Let Furnishings, Rental Property Furniture Specialist who offer a complete range of furnishing solutions for rented or buy to let investment property.

Londoners are looking for investments outside of London

The numbers of people who buy real estate outside of London, but still live in the city were increasing in the last months. This becomes the easiest way for people to get on the housing ladder.

Research of Property Investor Show has found that there are a lot of people who cannot afford a London Home. Therefore, they are buying properties elsewhere and starting to operate on a buy-to-let basis. And while having their own share of real estate, investors continue to rent in the capital.

A good example of scenario mentioned above would be - Luke O’Neill. Ladd bought a £155,000 two-bed house in Suffolk and rented it on buy-to-let basis. Luke shared his insights: “The rental yield for the property is give percent and the monthly rent goes towards the mortgage on the house and it also leaves me with a little extra.” These additional funds are being used to build up a deposit so he can eventually buy his “dream” home in London.

Manager of Property Investor Show, Nick Clark, explained that the practise was a good way for people to get on the ladder before prices bounce back.

Real estate prices in London are higher than elsewhere, which leaves all “future” investors looking outside of London. Especially when Department for Communities and Local Government revealed that this year in July the average price in the city of London was £343,182 compared to the average of England of £224,207.

Numbers are clear and force you to think carefully before jumping on the property ladder.

News source: http://news.hotproperty.co.uk/