Category: Insurance

Private landlord insurance – Intro

A buy to let mortgage is a type of mortgage loan obtained to buy a property. The property is obtained to be let out by the buyer. With this type of mortgage you would typically pay mortgage interest only and can be used for up to 90% of the estimated value of a property.Look private landlord insurance website for more info

Landlords building insurance is not only a requirement by your buy to let mortgage company by also for your own protection if something was to go wrong. A good policy should cover your liability to tenents and also the cover of rebuilding your property.

Landlords house insurance, which is a separate policy will cover emergency eventualities such as leaking roofs and blocked drains. It is normally up to your tenent to take out household contents cover. Unless your property is rented out furnished. A Buy to let mortages company normally make this very clear when you complete with them.

A buy to let mortgage sum is allowed to be spent on the purchase of more than one property and with this type of loan (after paying interest every month) you pay off the rest of the mortgage sum if you eventually sell the property.

Banks and investors want to expand and promote the private housing market. This is why the policy that was maintained a few years ago (charging those who buy a property to create income for themselves a higher interest rate and lending fee) has been changed significantly.

Only paying interest on a mortgage loan helps to keep expenses at a minimum so that the owner of the property (the landlord) can earn money on his investment. However, buy to let mortgages do usually have a slightly higher interest rate than normal mortgages.

Before you think of buying a property for letting it is very important to consider every single detail before you buy. The common return on a buy to let property varies between 7 and 10 percent. This is the return after all expenses such as landlords building insurance have been deducted from the gross income generated by a property of course.

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