Buy to Let - Starting Out

Posted on 28 May 2011 by Sonia Beldom

I want to buy a property for £110,000 to let out.  I currently own a house valued at £360,000 with a £14k mortgage left to pay and own a property outright worth £120k.  What are my best options to start looking into buying to let properties as long term investment please?


When looking for buy to let properties you need to consider who you want to live in the property, students, professionals, young families and whether or not they would want to live in the area you are looking at.  Just like buying your own home location is vitally important.  A good source for this information are the local estate agents.  Look for ones registered with the Association of Registered Letting Agents (ARLA).

You can also get some good information of the ARLA website:

As far as the finance is concerned I do not think you will have an issue so long as the property you choose is suitable for letting in the eyes of a professional valuer.  You should be able to borrow up to 80% of the purchase price of the investment property and raise the deposit on your existing  home.  Lenders will normally want the monthly rental to cover at least 125% of the monthly mortgage interest, which allows for the additional maintenance costs of owning a buy to let property and also provides a cushion for future rate rises.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to give you further advice and guide you through the whole process.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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