This summer marks the Tenth anniversary of the buy-to-let mortgage. In July 1996 Mortgage Express (part of the Bradford & Bingley group) were the first to trial a dedicated buy-to-let mortgage product, and currently has a market share of approximately 20 per cent. Buy-to-let mortgages evolved after new legislation within The Housing Act gave landlords more power to evict tenants who were not keeping up with their rent. In September 1996, the Association of Residential Letting Agents (ARLA) launched these loans via a panel of lenders, and hence the buy-to-let mortgage arrived in the UK property marketplace. Relaxation of criteria reflects the realisation that buy-to-let is not as risky as lenders first thought. There are now around 70 lenders offering the buy-to-l View the rest of this article
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The more you are willing to do a property up, the higher the potential profits. There is the danger that the property could lie empty for long periods and the market could suffer a downturn. There is a real advantage if your buy to let property is close by as you will be able to manage the property yourself. However, if you are employing the services of an agent then the vicinity of your properties is not a real consideration. One rule of thumb many buy-to-let investors apply is to factor in the property sitting empty for two months of the year this gives a substantial buffer. Finding the right property investment is key to the success of your long-term strategy.
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