The rise in second property ownership surged to the forefront during the late 90’s and was prompted by the launch of a ‘buy to let mortgage’. Traditionally purchasing second properties could only be funded via commercial banking facilities; however when the buy to let mortgage was developed both the interest rates and the fees were more attractive than commercial funding. It was has been widely regarded that buy to let mortgages assisted greatly in fuelling the property boom over the last 15 years.

Modern day buy to let and let to buy mortgages are a vital part of pension planning and wealth building. With the rental market commanding higher rental yield and property prices having stagnated for the last 5 years it seems as though buying a property to rent has never been more attractive. With property often considered to be a low risk investment the impression is that purchasing a second home is a simple way to make money. However, it is vital to consider all the areas of risk that can be associated with this method of investment; rental voids, property maintenance and legal wrangles with tenants can often lead to serious investment complications and risk. Further issues such as property stagnation and rental yields dropping can put pressure on monthly mortgage obligations to your property lender. At Romilly Financial we pride ourselves on our technical knowledge of the buy to let market. We are able to give advice not only on the features and aspects of the buy to let mortgages available in the market place but also any risks and benefits associated with buying and remortgaging a buy to let property.

If you are looking to rent your existing property and move on there are a wealth of let to buy options available on the market place however as with buy to let is important to understand all of the benefits and risks of this kind of funding.

Whatever your buy to let or let to buy requirements are please call us to discuss your options.