Landlords told to seek advice of residential lettings agents
Those considering becoming a landlord should seek the advice of residential lettings agents before they do so, it has been claimed.
The Daily Mail reports that because of rising rents and the fact that an increasing number of people are struggling to get on the housing market, by-to-let investments are seeing a mini boom.
However, there are a number of things potential landlords need to consider before making an investment.
For example, many novice landlords make the mistake of buying a house they would like to live in themselves, rather than choosing a location and property that will provide the best return.
According to Kate Faulkner, author of the Which? Guide To Renting & Letting, one of the best things those thinking of investing in property can do is to consult a lettings agency.
"Go to a lettings-only agent, who should be more than happy to brief you on the types of properties that are easy to let and how much rent you can expect," she told the news provider.
Landlords also need to consider the different buy-to-let mortgage deals on offer.
David Hollingworth, of mortgage broker London & Country, advised: "Some lenders use a flat mortgage rate when working out how much they will lend.
"For example, The Mortgage Works (TMW), part of Nationwide, uses 4.99 per cent and Northern Rock uses 5.99 per cent, even if your initial rate is lower."
This week, TMW announced the launch of a new five-year fixed rate at buy-to-let mortgage for landlords with a 50 per cent deposit.
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