For landlords who are looking to maximise their rental profits, keeping down your cost is absolutely essential in the current cost of living crisis we are experiencing in the UK – with your biggest outgoing likely to be your buy-to-let mortgage payments.
There has been a lot of concern surrounding the availability and affordability of mortgages over the last six months, which can be extremely worrying for those already tied into long-term commitments and property assets.
Nevertheless, the property market is starting to heal despite the rate of inflation increasing following the mini-budget, there are now many products back in the market and it’s now becoming possible to access two and five-year fixed deals under 4%, with some variable rates even lower than this.
We’re sharing some of our top tips to make sure you are not overpaying for your mortgage in 2023 and some of the options to take advantage of.
Check your property value
The average housing price growth is starting to stagnate for some, however, capital values have increased well despite the cost of living crisis and coronavirus pandemic over the last few years and continue to rise in some areas of the UK.
As a result, if you haven’t had your rental property valued in the last six months it would be well worth checking it out now.
You can get a good idea of your property valuation by checking out the average house price in the area your property is in and looking at other properties on the market in the surrounding areas.
The most accurate valuation you can receive is from an estate agent who can carry out a tailor-made market appraisal for your property.
Check your current deal and its expiration date
One of the first things you should be doing when looking to keep your costs down is checking your current mortgage deal and when it is due to expire.
If you are in a fixed deal you will be subject to a default move into higher interest rates once it comes to an end, so making sure you are clued up and prepared for either renewing or searching a better deal in good time will be essential if you don’t want to get caught out and put on higher rates.
Prepare a long-term financial plan for your buy to let
If you don’t already have an expenditure plan in place alongside a maintenance schedule it can be extremely beneficial to get one of those put together as soon as possible.
Preparing for future outgoings will really help you to avoid any unplanned expenditure over the months and years ahead, making sure you have the funds available for bigger jobs that may need to be undertaken in your rental property unexpectedly.
You should have capital put away for the general maintenance and outgoings beyond your mortgage repayments for annual boiler checks, insurance costs and inevitable minor wear and tear.
If you need any assistance with your current buy to let property or mortgage in Birmingham and the surrounding areas, look no further than Asset Residential for all of your property management needs.