Buy-to-let mortgage costs do not begin and end with interest rates (APRs). Along with the monthly or annual interest chargeable on the loan, you will also need to carefully consider all other borrowing costs that apply. Some of which are inevitable, while others can be reduced by working with a reputable broker to find a competitive deal.
Additional fees and levies to take into account when applying for a buy-to-let mortgage include the following among others:
- Taxable income from rent payment
- Surveyors’ fees and legal expenses
- Stamp duty on the property
- Ground rent where applicable
- Building and landlords’ insurance
- On-going repairs and maintenance
- Optional rental income insurance
- Letting agents fees
With a smart and savvy buy-to-let investment, each of these immediate and on-going costs can be augmented several times over with long-term rental income. Nevertheless, it is important to ensure that you are in a strong enough financial position to comfortably meet your repayment obligations.
Speak to an independent broker at the earliest possible stage, in order to ensure you make the best possible decision to safeguard your financial future.