Residential property investment is a type of strategy that involves purchasing a flat or house and renting it out to generate an income. Experienced landlords and property developers across the UK invest in residential property to rent it out to tenants to receive a rental income and grow their wealth.
If you want to invest in a residential property that you plan to let out to someone else but don’t have the immediate funds to do so, you will need to apply for a buy-to-let mortgage. A buy-to-let mortgage is ideal if you want to purchase property as an investment, rather than as a home to live in yourself.
You will likely have to pay a higher interest rate and arrangement fees with a residential property investment mortgage than with a standard residential mortgage. Expenses include:
Benefits: Safe investment, high demand for rentals, and income generation.
Downsides: Void periods where the property is empty, unexpected repair bills, and managing difficult tenants.
If you’re a first-time investor, Provide can help you find the best mortgage deal to suit your residential property investment needs.
Our experts are ready to help you find the right funding solution.