Market competition has seen more and more people considering purchasing a property to rent out with many lenders making it easier and cheaper to do.
But concerns have been raised that many amateur landlords are overestimating the amount of cash they will receive for their home and not taking into account the times it won’t be lived in.
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Melanie Bien of Savills Private Finance told the Telegraph that banks are now allowing landlords to pay a deposit of much less than has been charged in the past – with some dropping it by 50 per cent.
“The lender will want to see that the property raises enough money to cover the mortgage and in many cases, also supply a surplus to cover expenses, such as maintenance costs and a letting or managing agent,” she added.
Savills Private Finance is one of the country’s leading independent mortgage brokers and at the start of January opened two new offices – one in Windsor and another in Cardiff.
