If you’re already a landlord
Be aware that first-time buyers could be holding off from buying just yet, as they may be tempted to wait and see which way the market will go during these new, untold times. However, one thing that is for certain is they will still need somewhere to live in the meantime, which could push them into the rented market, which in turn could see rent prices go up.
Likewise, if those currently in the middle of a chain get cold feet and pull out, for the same reasons of uncertainty and unease, this could move people into rented accommodation until the buying market becomes clearer and people’s worries are put at ease.
If you’re considering renting a property out
If you’re considering investing in a buy-to-let property, then it’s worth keeping a close eye on the market. Interest rates are at a record low, and have the potential to drop further so now could be an excellent time to secure your money in a property.
Although we don’t know which way the market will go yet, if house prices do fall then this could also indicate a good time to buy. Just be aware that if this does happen, you will need to act quick, so be ready with your mortgage in principal in place as this could make you a more attractive buyer, plus you will know exactly how much you will be able to borrow.
If you don’t already have it, now would also be a good time to consider taking out landlord’s insurance to protect you and your property. Some of the things you are typically covered on include:
· Non-payment of rent
· Liability for accidents
· Loss of earnings/rehousing costs
· Damage to your property
Having landlord’s insurance protects you against all circumstances and gives you added peace of mind that you will be able to keep up your monthly mortgage repayments, no matter what.
Evaluate your finances
It’s always a good idea to re-evaluate your financial position every once in a while. So if you currently have a mortgage and feel it isn’t right for you anymore, then it’s worth speaking to a mortgage adviser to see what the deals are at the moment and which of those could suit your lifestyle the most.
Speak to Mortgage Advice Bureau
During times of financial uncertainty, it is always advisable that you seek expert advice from professionals in the industry. Mortgage Advice Bureau’s advisers have access to over 11,000 mortgage products from 90+ lenders, giving you many options and a better chance of finding something that suits you. Whether we arrange a face-to-face appointment or an over the phone chat, we will listen to your needs and your concerns and help make sure the whole application process runs as smoothly as possibly.
Michael Lawlor is from Mortgage Advice Bureau – for further information call: 02083431777
You may have to pay an early repayment charge to your existing lender if you remortgage.
There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.