close
Products
About us
Resources
Call us: +44 1632 960212

The Myths of Buy to Let Properties Explained

Over the course of our lives, many of us will think about purchasing a buy to let property, in this article we will explore what Buy to let properties are, debunk some regular myths and assess the pro and cons of buying one. 

Buy to Let Properties Explained

There are many different types of mortgages available to you, but for those seeking to develop a passive income stream through the rentals market, a buy to let mortgage may be an option. Simply put, a buy to let mortgage is a mortgage that is sold specifically to people who are looking to buy property as an investment and let this out to other people as opposed to a mortgage for their own personal use. 

If you are planning to rent out a new property or consolidate an existing property portfolio, the majority of lenders will prefer you to use a buy to let mortgage instead of a standard residential mortgage to finance your purchase. 

Buy to let mortgages are a useful tool for both seasoned investors with an existing portfolio of properties as well as new landlords looking to take their first steps into the rental property market, as effectively you have someone paying you rent which helps repay the amount you have borrowed from the mortgage provider with the potential goal of the property becoming yours at some stage in the future, however interest rates and deposits required are often higher than a standard residential mortgage for those considering a buy to let mortgage.  

Advantages of Buy to Let Properties

There may also be potential tax benefits and tax implications for anyone with or thinking about purchasing a buy to let property as well as the cost of upkeep and maintenance and seeking professional advice from a suitably qualified tax agent or professional is a must for anyone considering this route. 

In summary, many people like the prospect of buy to let properties and the attraction of having an investment in bricks and mortar with the goal of a passive income and property ownership, once the mortgage is paid off. 

Understanding the buy to let process and engaging the different professionally qualified that will be needed to help guide you through the various steps Involved becomes a critical exercise for anyone looking to pursue this option.   

*Our article does not offer financial advice or recommendations and the content above is for information only* 

Introducing Fintuity – Bespoke Financial Advice through Digital Delivery!

Fintuity is like a traditional IFA, only we are an online adviser which means we can offer a more cost effective, time-sensitive and flexible service! This is possible because our business costs are lower than our competitors. We offer the full range of IFA services via our digital platform, at below industry rates and at your convenience.

Please do not hesitate to get in contact to see how we can assist you. For more information please visit www.fintuity.com or contact Fintuity’s Communications Manager, Nic Cobb at nic.cobb@fintuity.com for all content & PR related enquiries.

Please note that this articles was accurate and up to date as of the date of publishing

We are here to help you
Your first consultation is completely free-of-charge. All you need to do is select a convenient time & date and outline how we can assist you.
virtual advisor
Try out our new Virtual advisor!
Get all benefits of Regular Advice via AI and ML algorithms
Related articles
Featured media
General
How to Prepare Your Finances for the 2024 UK General Election
06 Jun 2024 · Marketing Team

The 2024 General Election is coming up fast. Here are five simple steps to get your finances ready.   1….

Featured media
General
Investment
Mortgage
Pension
How the Upcoming General Election Could Impact Your Pensions, Mortgages, and Investments
31 May 2024 · Marketing Team

The general election could impact mortgage rates, pensions, and investments.     On May 21, Prime Minister Rishi Sunak called for…

Featured media
General
UK Inflation Falls to Lowest in Three Years: What It Means for You
23 May 2024 · Marketing Team

Inflation in the UK has dropped to its lowest level in nearly three years. This change is mainly due to…

Thanks for subscribing!
We’re happy you joined our subscription.
Chech your inbox for future updates.
An error has occured
Please, try again later or
contact us via live chat.