If you are looking for a steady income and investment then going into the buy to let could be the answer, however it is by no means a get rich quick venture and it is hard work and costly. There are many factors to take into consideration when it comes to the buying a second property and one of them is second property mortgage finance. Very few of us know much about financing and mortgage and this is where a specialist broker can really make a difference.
The type of second property mortgage finance that you will require will depend on what it is you are buying the property for; if you are going to have it solely for your own benefit then will make a difference to the loan as opposed to letting out the property to others. If you are going to be renting it out to others then this will be classed as a business and so you will need a buy to let mortgage rather than just a second mortgage, again this is where the advice of a specialist broker is needed.
The first thing you will need to take into consideration when it comes to buying the property is how well you know the market, for example do you know all the pros and cons of buying a second property, while there are many good points there is also the downside. Always remember while the buy to let can be a very lucrative business it is also a very risky one if you go into it with little or no knowledge.
The area in which you choose your second property can also make a huge difference when it comes down to getting second property mortgage finance. The lender will of course want to know that the property is in an ideal location especially if you are going to be renting it out. Whether you are considering letting the property or you are just living in it yourself then you will want to take into account such things as amenities and transport etc.
Also do through research in the area and look at the average cost of property and what you could expect to draw in for renting. If your broker is looking for a buy to let mortgage for you then the lender will usually ask that the rent you will bring in will cover around 130% of the mortgage. Going with a specialist broker is the only way to get the best deal when it comes to second property mortgage finance.