BTL landlords should keep a good credit rating
28th Sep 2012
Buy-to-let landlords in the UK who are looking to expand their portfolio of properties should make sure that they have a good credit rating constantly to ensure that they can secure a mortgage as and when they need to.
Lee Grandin, director at Landlord Mortgages, said that at the moment, there is a lack of good deals around for those who are looking to get themselves new property to add to their stock.
He said that first timers onto the market for properties for sale as a landlord should make sure that they have a good credit rating as they will struggle otherwise.
"The most important thing is to try and keep clean credit. Lenders are not interested in anyone who has got any adverse information on their credit files, which means late payments on anything from a credit card to a loan or mortgage. That is one of the main issues at the moment."
Landlords face better conditions than residential buyers, who need a 20 to 25 per cent deposit in order to secure a house. However, Mr Grandin said that those buying in a low-yield area, such as in the north-east of the country need to make sure that they have a larger deposit, as a higher loan-to-value mortgage will be required.
Posted by Staff Writer: Robin Stenson
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