‘Buy to let still offers attractions’

A realistically-priced rental property still offered a good potential return on investment in today’s property market.

As rents have remained stable a buy-to-let mortgage could also offer an investment for overseas clients, foreign nationals, Ex-pats and non-domiciled buy to let.

Industry reports say there is currently a shortage of new entrants to the buy to let market which will mean renters may have less choice in the coming months.

Existing tenancy rents are staying steady as many tenants prefer to stay where they are rather than incur the costs of moving in the current economic climate.

The main difference between buy to let and residential mortgages is the lending criteria. Outside of the valuation of the property, lenders base the size of the loan on potential rental income.

As a guide the rental income from the property an investor wishes to buy must equate to a minimum of 125% of the buy-to-let mortgage payment.

Claire Jennings, marketing manager at Investaco said: "The advice we provide is offered on a no obligation basis. We are completely independent, sourcing from the whole market, professional and honest; a simple but effective combination.

"We operate a team of fully qualified sales staff with equal admin to sales balance to ensure efficient processing, provide text or email updates throughout the mortgage process and are FSA compliant. We also assign key clients an individual specialist broker according to their requirements."

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