Summary

Buy-to-let mortgages have been over-achieving all year, now they're doing so well that mortgage companies are making their criteria more flexible to encourage even more investors. This article looks at the bigger picture.

Buy to Let Mortgages - where the smart money is. Part 2

Author: Anna Richardson

The mortgage lenders are getting very competitive on buy-to-lets, and have slashed

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Mortgages. First time buyers let down by the governments Homebuy scheme.: At this stage, the Governments Homebuy mortgage scheme for firsttime buyers seems a waste of time. This article explains why.
Mortgages and Loans. Islamic finance avoids interest.: Muslims are forbidden by the teachings of the Koran to pay interest. This means that conventional mortgages and loans cannot be used. This article explains the alternatives available for Muslims and defines some of the words used in Islamic finance.
Mortgages. Big changes in the buying and selling of houses.: In mid summer 2007 everyone who wants to sell a property will have to prepare a Home Information Packs before they put it on the market. This article explains what the Packs will have to include what they'll cost - and whether we expect them to work!
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Life Insurance News

interest rates across the board. Here are a couple of the best deals:

The Mortgage Trust - 3-year fixed, 4.75%
West Bromwich - 2-year fixed, 4.79%.

Both have a hefty 1.5% arrangement fee to pay though, so taking that into account, ( cheap car insurance ) the West Bromwich offer works out at the equivalent of 5.54% over the 2 years.

Landlords are not often put off by large arrangement fees however, paying more upfront is preferable to having to charge higher rental rates to cover inflated ( cheap loans ) mortgage payments. The more a landlord can pay up front, the more flexibility they have when it comes to meeting the criteria of rental income versus mortgage payments.

If people are considering getting into the buy-to-let business, it's a good time to do it, but you must do your research first. Look at the rental levels in the area and check ( cheap home insurance ) that there's no sign of the area becoming saturated. If there's a lot of properties currently empty then consider the risk of your property also standing empty.

A lot of money has been ploughed into city centres in the last few years, so these areas are most in danger of becoming not only saturated, but also overpriced. If a lender believes a property to be overpriced then they will cut the percentage that they will lend you, back to the old level of 75%.

You also have to make sure you can cover any periods where the ( life insurance quotations ) property is not bringing in any income - and be prepared for having to lower the rent because of competition, if the area becomes very popular. There's a lot to consider before making the leap to being a landlord.

Statutory Wealth Warning:
Your home may be repossessed if you do not keep up your repayments on a mortgage or any debt secured on it.