You are a responsible person, so you are constantly looking for new passive income sources to supplement your family's financial situation. But to invest in the UK property market, you will need a lot of capital, which may not be available to many British households. Are you interested in buy-to-let mortgages? Then an excellent idea in your case could be to call on the professional services of a mortgage advisor in Hull, who will find the best financial deals you qualify for. A property to rent could represent an investment in the economic future of your loved ones, and the passive profit you will enjoy could become the building block of your success.

Are you a person who is primarily interested in purchasing the home you have been renting for the past few years? Then the professional services of a mortgage counsellor could be crucial in discovering whether or not you qualify for the right-to-buy scheme provided by the UK government. But you probably need more details, and we are here to deliver the pertinent answers you deserve. So, in the following pages, we will look at the defining elements of buy-to-let mortgages and list the conditions and advantages of the right-to-buy scheme. Moreover, we will analyse the benefits of using the professional services of a mortgage advisor and present how they can help you.

Why Be Interested in Buy-to-Let Mortgages?

The interest rates set by the Bank of England are at their twelfth consecutive increase, and this coincides with a period of economic instability and rising inflation across Europe. For your family to have a positive financial outlook, a good idea might be to invest in an asset that will retain its value over time and bring you a passive income without a continuous investment on your part. And from this point of view, buying a property to rent out could be a good idea. The number of people interested in affordable housing in East Yorkshire is steadily increasing, and because of this, you will most likely never have any problems finding tenants for your newly purchased property.

A property purchased for renting out can bring you a steady income during nationwide economic instability. Such a property will most likely retain its market value and can be sold for a significant profit. Moreover, some of the expenses associated with the rental process may sometimes be written off from your annual taxes. But for a good proportion of Brits, buying a second home with cash is impossible, so you may need to call on a mortgage advisor in Hull to discover the best deals for the buy-to-let mortgage you need.

What Are the Requirements?

For lenders, buy-to-let mortgages pose a higher risk, so the conditions for obtaining this type of loan are often more restrictive. These loans require a deposit of at least 20% of the market value of the home you are interested in, and some lenders will request a feasibility study to demonstrate the profitability of your future investment. The minimum monthly income of the property will need to represent at least 120% of the monthly rate of the mortgage, and your annual revenue will need to be significantly higher than if you applied for an affordable housing scheme. Given that these loans are harder to obtain, using mortgage counsellors is crucial, and their expertise could be synonymous with your family's financial success.

A mortgage advisor may offer you financial deals unavailable directly from the banks or financial institutions you previously approached. Mortgage counsellors are professionals with a deep knowledge of market trends who have access to the databases of the most important lenders in the UK and could make you a tailor-made offer suitable for your case. A mortgage counsellor could determine whether you meet the necessary conditions for obtaining a buy-to-let mortgage, negotiate on your behalf the best possible conditions for obtaining a long-term house loan, provide professional guidance that would be beneficial if you want to claim tax breaks, and last but not least, handle the application process for the loan, which can allow you to concentrate on the essential things in life. And if you want to find out more about their expertise, you can visit Hullmoneyman.

What if I’m a Tenant in a Council Home?

In this case, you may be eligible for the UK government’s right-to-buy scheme. This is a programme under which council tenants who have lived in rented accommodation for at least three years can get a discount of up to £96,000 if they want to buy the property. And this amount is even higher if you live in London. For houses, the discount is 35% of the property's market value if you have been a tenant for anywhere between three and five years. After that, for each year you have been a tenant, you will be eligible for an extra 1% discount, which will be capped at 70% of the house's value, or a maximum of £128,800, for London. In the case of an apartment, the initial discount is 50%, which will increase by 2% per year up to a maximum value of 70% of the market price of the apartment.

Hull city council holds a stock of over twenty-five thousand homes, and many of the renters of these properties could, with proper guidance, benefit from the right-to-buy scheme offered by the UK government. The low price of the properties could benefit tenants who cannot afford to buy a house with a standard mortgage, and the household purchase could be an investment, which could bring a significant profit in the event of a resale. Moreover, as a tenant, you are limited in the customisation and modifications you can make to your home, but this is no longer true if you own the property. When we talk about home ownership, we're talking about stability, which is an increasingly important issue for British families navigating the rocky landscape of the UK's economy.

Take the Necessary Measures for Your Financial Stability

Calling a mortgage counsellor active in Hull and Eastern Yorkshire could be crucial to your family's economic stability. A mortgage counsellor will be able to find the best interest rates for the mortgage you are interested in, inspect your file and discover the government schemes you qualify for, and last but not least, provide you with market insight that you can use to make the best decisions for your loved ones. Owning your own home is a dream for many Brits, and using the professional services of a specialist mortgage advice firm could bring you one step closer to realising this dream.

Moreover, calling the experts might be necessary if you face financial difficulties. Have you been self-employed for a long time and don't know if you will qualify for a long-term house loan? At one time, you had an active CCJ in your name? Is your family's combined income on the edge of the minimum amount required for the first home scheme? Then a mortgage counsellor could be an ally you can use to resolve your situation. Professional mortgage counsellors are adequately insured, and the FCA regulates their work, so there is no risk to you and your loved ones.

Publication: 12/06/2023 10:46