When things are looking less certain it becomes all the more important for people with buy to let mortgages to make sure their properties are working perfectly. For those people coming to the end of a cheap fixed rate deal, your finances may start looking a little stretched. With the financial markets looking uncertain, many banks have chosen to stop their most appealing deals and are not pushing for new customers. Below are some suggestions to beat the credit crunch.
Anyone that has uses buy to let mortgages for their properties will have to find the appropriate insurance. A quick glance at any insurance website will prove that the cost of insurance varies a great deal depending on which company you chose. You can save up to two hundred pounds a year so it’s definitely worth looking at the options as your current insurance broker may not be able to give you the best price. If you find a better deal you can also approach your current insurer with the quote you have been given to see if they can match the price.
Interest free mortgages
If you discuss your concerns with a buy to let mortgage broker you may be able to convert your buy to let mortgage to one that is interest only. This change will not only lower the monthly cost of your mortgage but will allow you to get extra tax relief on the interest you have paid. Talk to your accountant who can advise you on ways to offset the interest you pay against your rental income.
Many landlords have commented on the increased demand they have for their properties. More people are renting and many letting agents have increased their rent by up to ten percent on all their properties. This increase in rent will often help you when you apply for new buy to let mortgages and will definitely ease the other running costs you have. Many landlords report that they have not increased their rent for many years and as a result, are losing our on valuable income.
From the beginning of October the government requires that all landlords issue an EPC certificate to any new tenants. These certificates will let the tenant know how energy efficient the property is. For landlords concerned about the risk of an empty property and still haying to pay their buy to let mortgages it is worth considering increasing the overall standard of their EPC rating. With the rising cost of fuel many tenants will look for properties that are energy efficient. You can also get some tax breaks on up to £1,500 spent on improving things like loft and floor insulation.