Getting a buy to let mortgage can be the best investment you ever make. You could acquire a property, or even several, and make them pay for themselves. Finding the best buy to let mortgage product for you is the first step; repayment, interest-only or mixed?

The type of mortgage you have has an effect on all of the other matters to consider when investing in property, such as charging rent and ensuring that you do not lose money. Below is a short guide to other issues to consider when embarking on a buy to let mortgage.

Location, location, location
It is advisable to think hard about where your buy to let property is going to be. Statistically, the closer you live to the property you are renting out, the more successful you will be. Landlords who live close to their tenants are able to care for the property more easily, for example, by being close at hand to deal with repairs and maintenance. You are also more likely to have personal experience of the local area, which can help you to make a better choice about the type of property on which you will take out a buy to let mortgage. For example, you might live in a university town, in which case, you are likely to know which properties would be successful as student accommodation.

Buy to let mortgages: Doing It Yourself
Even if you are paying less on a month-by-month basis on your buy to let mortgage by getting an interest-only deal, you could end up spending more in the long run by buying a house that needs more repairs. Many first-time buy to let borrowers fall into the trap of buying a “fixer-upper”, attracted by a low price, but then end up losing money. This is because the more maintenance you need to do, the more rent you will need to charge your tenants in order to cover costs. Tenants, also, may not be attracted to a property that is clearly in need of regular repairs.

Protecting yourself against losses
Having a buy to let mortgage comes with some cautionary advice. Although your property effectively pays for itself through rental revenue, there will undoubtedly be periods where you have no tenants, and thus will have to meet mortgage payments out of your own pocket. These are referred to as “void periods”. All landlords experience them; good landlords make sure they do not last long, and protect themselves against them if they are extended.

You can protect yourself against void periods firstly with good planning, ensuring that if you have a tenant moving out, you have advertised to fill the room in advance so as to fill the space as quickly as possible. You can also buy insurance to cover you in the event of void periods, where your mortgage repayments are covered. Your mortgage lender should be able to provide you with information on such insurance products.