If you are a landlord and are frustrated by the continuous rise in interest rates when all you want to do is start or expand your property portfolio, taking out an interest-only mortgage could be the answer. Many seasoned landlords choose this option when investing in property, even during the good times when mortgage interest rates were ultra-low.

Demand is incredibly strong
A survey conducted by paragon of 700 buy-to-let landlords found that 67% reported tenant demand over the first three months of 2023, up from 65% for quarter four of 2022.* Rents are increasing all the time, and one of the main reasons for this is rising interest rates. As a landlord, this will most likely be your biggest expense.

What is an interest-only mortgage?
Just as the title suggests, you only pay the interest and not the capital on an interest-only mortgage. At the end of the agreed-upon term, you must pay off the entire balance owed. Because you are only paying interest, your payments will be much cheaper compared with a capital repayment mortgage. Some landlords choose to sell their property to repay the outstanding balance.

So why choose an interest-only mortgage?

• Increased profit: if your payments are lower, there is far greater scope to make a profit from your buy-to-let business. This also gives you stability and lowers the price of your overheads, which could be less than half of that when repaying a capital and interest mortgage.
• Overpaying: while it’s possible to make overpayments on an interest-only mortgage, this will typically only reduce the amount of interest outstanding on the mortgage. If you choose to do this, your profit will increase further, giving you more options to expand your portfolio.
• Your property’s value: in the long term, property increases in value. It’s not an absolute guarantee, but if you look into the past, despite short-term rises and falls, property values have significantly increased. This is not expected to change in the future. Therefore, it is reasonable to assume that at the end of the term of your mortgage (or if you sell up half or part way through your investment), there will be a profit between the capital outstanding balance on the amount you owe your lender and the selling price of your property.
• You can develop and improve the property: with more profit to plough back into your property, you can develop it. This will add to its value, ultimately increasing how much rent you can charge. And when it’s time to sell up and move on to bigger and better things, you will achieve a greater return on investment. The greener you make your property, the more rent it could fetch while future-proofing your investment.
• Security: preparing for the unexpected is a sure way to protect your investment. And by choosing an interest-only mortgage with fewer outgoings, you are already in a better position should the unexpected occur.
• You can always change mortgages in the future: as you become more seasoned as a landlord, you may devise a strategy so that you own your buy-to-let property outright. There is nothing stopping you from changing your mortgage type after a few years. And in the meantime, use the profit you make with an interest-only mortgage to use as a deposit, reducing the cost of a capital and interest mortgage.

Browse our properties and create the buy-to-let portfolio you have always wanted.

Paragon*

 

Preparing your home so that you can create priceless happy memories during the summer months ensures all members of the family are free to roam and play in a safe and fun environment. It also reduces stress levels when younger members of the family spend more time at home and can become a rowdy bunch when not at school. And if, like many people, you are considering moving to a better home, keeping it in order will help you achieve your moving goals. So, here are a few tips to help you make life easier.

Create some space
A change is as good as a rest, and moving and rearranging the furniture in your home to make it safer for your little ones to play will also showcase your indoor spaces for potential buyers. It may also give you some ideas on how to make better use of the rooms in your home while clearing out any no longer needed or tired furniture and other items.

Clean and de-clutter
It’s incredible and sometimes hard to believe how much space the little things in life take up. From bottles to utensils on kitchen worktops—things that you want to be out of reach of curious children—to old mail and the never-played-with-any-more toys. Cleaning is something you will be doing a lot of at this time of year, so why not go to town and clear out the closets and give everything a good clean? This will make it easier to maintain levels of hygiene, and cleaning up after the kids will be much easier. Your home will also look and feel more appealing during viewings.

Create a list of activities
By being organised, you can plan your day to fit around viewings. This will help prevent boredom for you and your family! It also gives you the means to plan your day and break different activities into manageable chunks, giving you all something to look forward to.

Sort your outdoor spaces
These are hugely important to buyers, and they need to be safe with no sharp edges for your buyer’s family as well as yours. Creating a perfectly amenable family dining area will give you a great place to enjoy happy alfresco memories. Outdoor spaces should naturally create a seamless flow from the indoors to the outdoors. If your home is very much a family home, perhaps a tree house could mean the new owners bought two homes for the price of one.

Make the most of your garden
There is little chance the children will want to help you these days! But if they do, what a bonus! That said, even if you are not a keen gardener, you could inspire younger members of the family with interesting flowers or fruit trees. Weeding and lawn cutting are a must to make the most of your garden’s appearance, but no prizes for guessing who will get that responsibility.

Will all this help you sell your home?
Absolutely; it’s all about achieving your asking price. And the numbers in property are big, so every little thing you do adds up to make a big difference.

 

Get in touch to see how we can help your family create a thousand wonderful memories by finding your perfect house.

 

 

The early summer months are traditionally a busy period for the UK property market. It’s a gorgeous time of year to view an abundance of beautiful properties. Many people are on the move. While it’s still a hive of activity with a huge choice of homes, the property market takes a little summer siesta as homeowners take a holiday. This gives you a chance to make your move. But don’t be fooled into thinking it will last for long, so if you want to take advantage of it, you need to be quick.

The summer property market is resilient
The summer market is vibrant, with the average new seller asking price falling by just £82 (-0.0%) in June to £372,812.* Despite the various challenges, including rising interest rates and the cost of living, the property market is resilient and in good shape. This change in prices is negligible in percentage terms, and a side-step can be a healthy pressure release that allows the property market to cool off.

View your ideal home from the beach
Sometimes getting away from it all can help bring about clarity of mind, which is very useful when you are making big decisions. Perhaps the beach or poolside is the perfect place to peruse your potential properties. And a good time to discuss your big move with your partner while you are away from the hustle and bustle of everyday life.

Enjoy quieter roads to your new home
With schools closed for the summer, the roads become quieter, and you can drive to viewings with less stress. This means you can relax a little more and take a bit more time to enjoy your viewings. With an increased sense of calm, talk to your agent, who will expertly guide you through your potential new home and anything that helps you with your home move.

Leave your agent to sell your home while you take a holiday
Hop on a plane, boat, or if you’re jumping in the car to drive to your holiday, whatever you are doing if you have made the decision to sell, leave it with your agent and enjoy your holiday. Perhaps by the time you return, your house will be sold.

Make an offer with less competition
With fewer people around, you may be able to open the door to making an offer below the asking price and getting it accepted before others have even viewed the property in question.

It’s the perfect moving season
With more family members to assist your big move and longer, warmer days to enjoy once you are settled in, the summer is perhaps the best time of year to move. And you may be able to save some money on home removal costs with more hands to help. If you hire a removal company, you may find it easier to find the right help.

Enjoy your new home
When you have finally moved into your new home, you may still have time to make the most of it during the warmer months of the year, when utility bills are a little lower. Any outdoor improvements, from weeding the garden to adding to your outdoor spaces and simple maintenance, can become a joy rather than a chore.

 

Take advantage of the summer holidays and find the home you love. Browse our properties.

 

Rightmove*

 

No matter how advanced technology becomes, there is nothing quite like face-to-face property viewings. This is particularly true because you can get a sense of how you feel about the property, and when you are investing a lot of money in bricks and mortar, you can’t be blamed for wanting to get up close and personal with it as much as possible. But with all that said, virtual viewings have many great benefits and can enhance your home-hunting experience.

There are a few ways you can conduct virtual viewings
Virtual tours are an established part of viewing properties online, and you can easily move about inside your potential new home online with most agents offering 3D viewings. Thanks to WhatsApp, Facetime, and Zoom, bespoke real-time video tours with your agent can easily be arranged, with the advantage of being able to talk to your agent as you view the property. You can ask as many questions as you like and direct your agent to certain features of the property.

You can conduct virtual viewings from anywhere
It could be that you are just on the other side of the city or that you are too busy to stop everything to attend a viewing. Wherever you are in the world or whatever you are doing, you can explore your potential new home or investment, and that saves you a lot of time and money if you are working or located overseas. Gone are the days when you had to fly home before you made a decision or an offer.

Virtual viewings when you are selling
If you are selling up and you don’t like the idea of lots of people coming to your house to view, then virtual viewings can help. And if you are conducting your own viewings, you will not have to be home quite as much, so you can get on with life more easily.

Virtual viewings can give you more time
By arranging a virtual viewing, you are giving yourself a chance to quickly get to know your potential new property. This then gives you a little breathing room to think and compare your choices.

You don’t have to wait before you make an offer
If you love what you see and want to make an offer on a property, you can do it there and then. If you are in competition with other buyers, this can be helpful in getting to the front of the queue. Your agent, solicitor, or conveyancer can take care of the rest.

Virtual viewings can be used in conjunction with face-to-face viewings
You may view many properties virtually until you find what you are looking for. And if nothing else, virtual viewings help you narrow down the final contenders for the big decision. There is nothing to stop you from conducting a face-to-face viewing before you make an offer.

 

Contact us if you would like to arrange a face-to-face or virtual viewing with one of our agents today.