Buy-to-let mortgages are specially tailored to suit the needs of individuals, or groups, wishing to invest in properties for the purposes of renting to tenants. With this type of mortgage, the amount available to a potential investor is dependent on the value of the properties rental value. Most lenders require that the property can generate enough income to meet the mortgage repayments, plus an additional 20-50%, the extra amount needed is stipulated in order to cover the costs of possible vacancy (void periods) and potential repairs.

Occasionally, mortgage lenders will base their calculations on your own personal income, they will offer to lend up to four times your salary, but will deduct from this an amount equal to the estimated mortgage repayments for the financial year. Therefore if you are earning £50,000 a year and they estimate that the repayments will amount to £10,000, they will subtract this from your salary, leaving £40,000 and then multiply this figure by 4.

The interest rates offered for buy-to-let mortgages are almost equivalent to the interest rates levied on personal mortgages, but they will be slightly higher and there will be a higher charge for fees, such as stamp duty.

Buy-to-let mortgages have become increasingly popular in the UK, due to their potential as long-term investments; this is largely because of the possible tax relief and advantages that buying-to-let can generate. Although they are taxed at the same rate as a working income, either 22% or 40%, landlords are able to claim back taxes for such things as maintenance costs, and possibly the value of the interest rates.

Buying a property in a desirable location is a must, but consider the state of the property and make your choice by striking a balance between the location and the condition. Remember to take into consideration the facilities in the particular area.

Begin by establishing the type of clientele you are wishing attract, then tailor your choice of building according to their needs. For example, professionals will be searching for lettings in affluent areas with an interesting and contemporary ambience, and which contain all mod cons.

Once you have made the purchasing decisions, the next step is to consider how to find the right people to fill your property. This can be achieved via several methods, you can interview them yourself, and for this you may ask for previous references, both financial and residential, in order to determine their suitability for the property.

Remember that tenants will want to add their own personalities on their property, do not over decorate, but provide them with a relatively blank canvass to work on- if they wish to re-decorate you may wish to use a decoration fee, rather than a deposit.