Buy to Let Mortgage Advisors Leeds

Whether you are an experienced landlord, or are searching to purchase your first buy to let property, Freedom Advice has decades of knowledge and experience as independent mortgage advisors to help you make an informed investment decision.

Call us on 0113 829 3465 to discuss your buy to let mortgage needs.

If you are looking to rent property out, you need to be aware that ‘buy to let’ mortgages are very different to normal residential loans.

The term ‘buy to let’ refers to buying a property to rent out to tenants. The main aim of buy to let is to make a profit, whether this is from the rental income or the growth in value of the property.

Consequently, mortgages taken for this purpose are treated as commercial borrowing by lenders and the Regulator, the Financial Conduct Authority.

The FCA regulates very few of them as you are deemed to be in business, whereas the FCA looks to protect ordinary consumers.

Therefore, most buy to let borrowers are not given the same protection from poor advice that normal residential loans receive.

Understanding the buy to let process

Investing in a buy to let property can be appealing to many, but before getting started, it’s important to understand exactly what’s involved.

This is because a buy to let mortgage is quite different from buying a residential property that you would live in yourself.

For example, although the purchase will still be part of a conveyancing process, there will be different charges and expectations that you will have to bear in mind.

Research the market before you buy

Before you purchase a buy to let property, it’s integral that you are able to grasp the basic elements of the investment, such as potential risks and extra costs that could arise.

If you can, try and get an understanding of the local market from friends or associates who have made similar investments. Ask them about experiences and challenges that they had to overcome.

Letting agents in and around Leeds are also a good and reliable source of information, as they will know which properties are currently in demand.

Find an area that will work for your investment

Search for a promising area that will work for a buy to let property and bear in mind who might want to live there.

If you’re looking to let to young professionals for example, search for residential areas with good transport links around the outside of Leeds city centre.

On the other hand, if you’re looking to rent to a family, find out where the good schools are and what local commodities might benefit them.

Although these suggestions may sound overly simple, they are often the ones that can make or break a buy to let investment.

Work out your finances

Before you start looking at properties, research how much the cost of a property will be against the rent that you are likely to receive.

It’s important to remember that properties can be repossessed if you fail to keep up with repayments.

By speaking with us, we can give you a good idea of all the costs involved with purchasing a buy to let property, so you can understand how profitable the investment will be.

Put yourself in the shoes of a tenant

Understanding what kind of tenant you want is integral to the kind of property that you will buy.

Different types of tenants will have different expectations for where they live.

For example, young professionals might want a modern and stylish property in the city centre, but this might not fit the needs and wants of someone in a different stage of their life.

A family, on the other hand, might want to stay in the property for a longer length of time than a young professional, so they are likely to want to make the property feel more like home.

You will often find that a family will want to paint the bedrooms of their children, or take out unwanted furniture, but long-term tenants are usually more beneficial for landlords.

As a landlord, you can also take out various forms of insurance, such as when a tenant fails to pay their rent.

If you want to know more about what kind of insurance is available to you, Freedom Advice can advise and arrange insurance policies for buy to let landlords.

Don’t be afraid to haggle

A buy to let landlord will always have more bargaining power than that of a first-time buyer during the bargaining process.

Much of this comes from the fact that you are not part of a chain, which is a sizeable advantage for when you are negotiating a discount.

Bear this in mind when making an offer, and start low to ensure that you are not talked into overpaying.

Consider what your responsibilities will be as a buy to let landlord

Your responsibilities will differ depending on whether you want to rent your property out yourself, or whether you want an agent to do it for you.

Agents will charge some form of management fee, but they will also deal with day-to-day issues, such as when a plumber or an electrician needs to be called.

If you decide to rent the property out yourself, you will save the cost of letting agents, but you will have to take the time out to arrange viewings as well as sort advertising and repairs.

As well as high street agents, there are also many independent agents in and around the Leeds area that can provide reliable services to buy to let landlords.

Research and work through a range of letting agents and see what each one can offer.

Buy to Let FAQs

We’re often asked a range of important but common questions in regards to purchasing buy to let properties.

How much can I borrow on my rental property?

This will differ between mortgage lenders as each uses their own formulas and checks to assess how much you can afford to borrow based on the rent you will receive from your property.

By speaking with us and providing the necessary details, on your behalf, we can investigate which lenders will offer you the most suitable mortgage for your needs.

Do you work with Portfolio Landlords?

Yes, however, due to the increased scrutiny placed on portfolio landlords, we reserve the right to charge an additional £195 administration fee per new mortgage application.

Can I get a buy to let mortgage if I’m a first-time landlord?

We have helped countless numbers of Leeds-based first-time landlords in our time and we can help you understand the benefits and constraints of buy to let mortgages, as well as important factors such as market conditions, and the many different types of lenders on the market.

Based just outside the centre of Leeds, Freedom Advice is highly flexible in its approach, and we can arrange a meeting either at our offices or at a location chosen by you.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. Think carefully before securing other debts against your home.