Buy to let
Buy-to-let is an increasingly popular proposition for investment. Cambridge has one of the highest concentration of buy-to-let properties in England.
The two main considerations on buy-to-let are the anticipated yield and the likelihood of good capital growth. The yield is the annual return from rental income less expenses expressed as a percentage of the capital value of the property.
In general self-management is not sensible unless you actually live very close to the property. Remember maintenance and repair costs when calculating yield. In particular don’t forget the landlord’s responsibility to annually maintain the gas installations. Landlords also have statutory obligations relating to Tenancy Deposits.
Buy-to-let mortgages are different from ordinary mortgages. There are three or four lenders who dominate the buy-to-let mortgage market but most mainstream lenders will also lend for buy-to-let and often offer better rates.