Fancy a BLT or BTL?

4th April 2013

One’s a tasty sandwich the other could be a tasty investment………

The number of buy to let (BTL) mortgage loans have reached their highest level for over four years with many landlords looking to expand their property portfolios. This market is certainly benefiting from strong tenant demand.

Long term investment in the buy-to-let market is an attractive option at the moment compared to the rocky stock market and current interest rates being low for savers.

Improving mortgage deals are tempting investors once again but be careful to consider that many investors who bought in the boom boom days struggled when interest rates rose. With the current base rate lying at 0.5% it is inevitable that they will rise at some point.


  • Understand the benefits as well as the risks. Watch you don’t tie up all your capital in a property that may well fall in value.

  • Invest in the right area – ask yourself where in your chosen town is the best place for schools, are there good transport links and where do students want to live?

  • Look out for up and coming areas t make a good choice for investment potential.

  • Work out your sums. Most of the BTL lenders require the rent to cover 125% of mortgage repayments. Also remember the better rate BTL mortgages often come with larger arrangement fees.

  • Many new BTL deals require a larger deposit.

  • Choose tenants carefully use a reputable agent and have credit checks done to ensure they can pay the rent.

  • Property values may slide in the short term so consider investing for a decent rental return and not capital growth.

  • Don’t buy a property that you like, look to purchase one where a tenant will start thinking “long term”.

  • Shop around and get the best mortgage deal. Speak to specialist BTL mortgage brokers.

  • Consider buying new or nearly new – these type of properties require less maintenance.

If you would like advice on selecting the right properties to purchase or you need assistance in the management of a property portfolio please contact your nearest office:

George F White

Alnwick, Northumberland 01665 603581
Barnard Castle, County Durham 01833 690390
Wolsingham, County Durham 01388 529579
Bedale, North Yorkshire 01677 425301
Shiptonthorpe, East Yorkshire 01430 876010


Newcastle, Tyne & Wear 0191 605 3150

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