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Find your local brokerWhilst becoming a landlord means a long list of responsibilities and hidden costs, the benefits of growing your property portfolio are many. By starting or adding to your property portfolio, you can unlock the extra income, independence and security you need in the current climate.
As a leading provider of buy-to-let mortgage advice, our experts are often the first stop in your journey to starting or adding to your property portfolio. In this blog post, we share our advice for growing your portfolio for 2023.
The Bank of England (BoE) interest rate may be climbing, which means the finance you require to fund a buy-to-let purchase is more expensive, but due to recent developments and trends, now couldn’t be a better time to invest.
With fewer people in a position to buy and higher borrowing costs to foot the bill for, rental prices have increased nationwide as the latest Index of Private Housing Rental Prices from the Office for National Statistics (ONS) details:
“Private rental prices paid by tenants in the UK rose by 4.2% in the 12 months to December 2022, up from 4.0% in the 12 months to November 2022. Annual private rental prices increased by 4.1% in England, 3.5% in Wales and 4.4% in Scotland in the 12 months to December 2022. Within England, the East Midlands saw the highest annual percentage change in private rental prices in the 12 months to December 2022 (5.0%)…”
The UK property sector is very much a buyer’s market at the moment. With this, investors looking to snap up low-priced or better-value properties can do just that.
When finding the ideal property to add to your portfolio, consider the entire market. While ‘doer uppers’ traditionally offer great value and the highest chance of profit in the long term with the right upgrades, the new build market is a great area of investment for 2023.
In the new build property market, competition and interest are particularly low, so why not take advantage of this when purchasing your next investment?
It’s not just the property itself that matters; the surrounding area also has to be attractive to tenants to keep your let occupied for the long term. Before adding to your portfolio and starting your search, do some digging into the best buy-to-let areas.
The affordability, rental prices, yields and returns, house prices and current population are vital indicators of whether the area is worth your investment.
There are several ducks that you’ll need to get in a row before purchasing an investment property. With buy-to-let mortgage criteria stricter and requiring larger deposits as a result, saving the funds to secure finance is vital.
Generally, you’ll need at least a 20 to 25% deposit for a buy-to-let mortgage. If you can save more, you’ll have access to the best mortgage products on the market. You can find further information on buy-to-let mortgage deposits here.
The deposit isn’t the only cost you’ll have to foot the bill for as a would-be investor. Stamp duty, income tax, letting agent fees, maintenance costs, ground rent, Capital Gains Tax, landlord insurance and your monthly mortgage repayments are other costs associated with buy-to-let purchases.
Get the buy-to-let mortgage advice you need to grow your property portfolio in 2023 by contacting us today.
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. A typical fee is £295. Ask for a personalised illustration. The Mortgage Bureau is a trading name of A.M. Mortgages (UK) Ltd. Authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some aspects of Buy to Let mortgages.