Q: I have a couple of properties, which I bought three years ago. I don't think I'm getting a particularly good deal on my buy-to-let mortgage, so is it fairly easy to change lenders or will it be more trouble than it's worth?
A: The chances are that if you go directly to a lender, it could take up to three months remortgage. However, if you use a brokerage firm who employ people dedicated to processing mortgages, you could obtain a mortgage offer within 10 working days and it is then possible for a solicitor to complete given another 10-15 working days; so it need not be a hassle, but you have to employ the right people to do the job properly. Also, if you bought the properties three years ago, it is highly likely that they have increased in value and you could release equity from them to 'gear up' and purchase additional properties to expand your portfolio.
Q: Is buy-to-let still a good investment?
A: For the landlord with a long term outlook upon their investment strategy, buy-to-let is still a good investment prospect. Those investors looking to make a 'quick buck' from buy-to-let may wish to reconsider their short-term approach to property investment.
Q: I'm about to buy my first property to let out and I think to be on the safe side I'm going to use a letting agent, at least at the start. Do you have any pointers on how to tell whether a letting agent is any good, and how much they should charge?
A: Phone around a few agents and ask for any references. See if they will allow you to speak to any of their other clients directly. In terms of how much they should charge, this may vary depending on the area you are investing in and even the type of property you are looking to rent. But don't forget that this is a business for you and a business for them so don't be afraid to negotiate a good deal.
Winter 2005
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