Finance an investment property
90% of all millionaires become so through owning property.
Even for average earners, one of the most effective paths to financial success is property investment.
But first, understanding how to finance an investment property is essential.
That’s where we come in. Here at Easy Living, we’ll be your trusted partner for property investment financial advice in the UK.
To book a call, enter your details in the box and we’ll be in touch.
What is property finance?
The right property finance strategy can greatly increase your ROI on the project.
Property finance is the funding secured to purchase, develop, or invest in property. This can be through a mortgage, loan, partnership, or another finance source.
With Easy Living, you’ll benefit from practical tips on how to finance your property ventures, from an experienced Mortgage Advisor.
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Once we’ve established the best property investment strategy for you, we’ll have as much or as little involvement as you want us to. Whether that’s seeing the project through to the end, or just helping you to secure finance.
How to finance property?
Easy Living make it easy peasy.
Financing property requires careful planning, which is where we come in. Here’s how Easy Living UK can help guide you in financing your investment properties effectively, to bring you maximum returns.
First we’ll evaluate your financial health and what you’re looking to achieve from a property investment, whether this is to generate extra monthly income, or to build long-term growth for the future.
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Looking at your budget, deposit, ongoing mortgage payments, maintenance costs, and potential vacancy periods, we’ll be able to let you know the best route to take. This assessment will help you understand your borrowing capacity and risk tolerance.
We assess your financial situation
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Our financial property experts have extensive knowledge of different types of property investments including standard buy-to-lets, HMOs (houses of multiple occupancy), serviced accommodation, and more.
Our property finance experts will guide you on which locations will provide the most capital growth or where will yield the most rental profit. Location is KEY.
Advice from property finance experts
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Our in-house property finance Broker will compare thousands of mortgage and finance products from multiple banks and lenders to ensure we get you the best deal based on your circumstances.
We’ll get your mortgage agreed in principle so that you have everything in place ready for when you make an offer.
We’ll secure you the best deal
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Types of finance for property investment
When looking to finance investment properties in the UK, it's important to understand the options available to you. Here are some of the most common types of property finance.
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How much do I need to buy an investment property?
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The amount of money you need to finance a property and the types of investment mortgages available can vary depending on various factors, including the purchase price, location, your financial situation, and the lender's specific requirements.
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Here’s what you need to consider before buying an investment property:
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1. Property purchase price: For a buy-to-let mortgage, most lenders in the UK will ask for a minimum deposit of 25% of the property value. Some may accept lower deposits, but you’ll usually get better terms and interest rates with a higher deposit.
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2. Deposit: To find out how much you’ll need, simply multiply the property purchase price by the deposit percentage required by the bank or lender. For example, if the property price is £200,000 and the lender needs a 25% deposit, you’ll have to put down a £50,000 deposit.
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3. Monthly mortgage payments: This cost will depend on the mortgage type, interest rate, loan term, and the amount borrowed.
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4. Additional costs: As well as the deposit, you’ll need to budget for other costs involved in buying an investment property including:
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Stamp Duty Land Tax (SDLT): This is payable on properties above a certain threshold. How much you’ll need to pay will depend on the value of the property, and your situation, i.e. whether you’re a first-time buyer, homeowner, or an investor.
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Legal fees: You'll need a solicitor or conveyancer to handle the legal side of the purchase.
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Valuation and survey costs: Lenders often require a valuation or survey of the property to assess the condition and value.
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Mortgage arrangement fees: Some lenders charge fees for setting up the mortgage.
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Property insurance: You'll need insurance to protect the property and its contents.
