Liverpool is full of property opportunities, and the renting scene is booming. Whether your target tenants are students, young professionals, or families, you’re sure to find the perfect property to let in Liverpool.

However, there’s plenty to consider when opting for a buy-to-let mortgage. If you’re thinking about buying to let in Liverpool or you simply want to gain a better understanding of the process, you’re in the right place.

Keep reading for some of the main things you should consider when buying to let in or around the Liverpool area, as well as the buy-to-let basics.

Buying To Let – The Facts

Buy to let is a type of mortgage – solely for the purpose of purchasing a property to lend out to tenants. It’s a loan that’s designed for landlords – and differs slightly from your standard residential mortgage.

Being a landlord isn’t as easy as you might think, and as well as mortgage costs, there may be extra costs you need to consider such as insurance and property management.

Being a landlord can be a great way of generating income – and you have more control over the outcome than you would with different investments. You can earn a profit from collecting rent from your tenants, and could even place the house up for sale further down the line.

However, like with any mortgage, you need to be eligible. Lenders will assess your income, affordability, borrower status, credit history, as well as your personal details – and the deposit may be higher than other types of mortgage.

Things To Consider When Buying To Let In Liverpool

There is plenty to consider when applying for a buy to let mortgage, regardless of the city you’re buying in. However, if you’re looking to buy to let in or around the Liverpool area, then we’ve got you covered – read on for some things you should consider if you’re looking for a buy to let mortgage in Liverpool, Chester, or the Wirral.

Research The Market

One of the first things you should do if you’re considering buying to let in the Liverpool area is to check out the market – after all, you need to know what you’re getting involved with.

Be sure to thoroughly research the market so you have a firm understanding of the process. We recommend discussing the process with a Liverpool mortgage advisor.

You can ask a mortgage advisor any questions you may have about the process, whether it be questions about the local area, or what to expect from lenders.

Once you’ve researched the market, you should be able to determine whether a buy-to-let mortgage in Liverpool is the right path for you.

Research The Area

If you’re planning on purchasing a property in Liverpool, whether it be to live in or to rent out to tenants. Be sure to check out how much property rent is in the area you’re planning on purchasing a property in – you’ll notice that the rent will drop and rise depending on the area.

For example, rent may be lower in areas like Bootle and Kensington but then much more expensive in Liverpool city centre.

Some other things to look out for include accessibility – is it near a good bus route, or within walking distance to a train station? If your ideal tenants are families, then are there schools nearby? Or are there any universities or colleges in the area?

Consider Your Ideal Tennant

Another thing to consider when buying to let in Liverpool is your ideal tenant (your target tenant). Have a think about what type of tenant you want.

As Liverpool has a total of five universities, there is never a shortage of students looking for homes – so many landlords will let properties out to students, either as student accommodation or house shares (Houses in Multiple Occupation).

However, student lets are generally short-term as students will rarely rent a property for longer than a year. There’s also property maintenance to consider – it’s no secret that students like to party, and this could cause property damage.

If you plan on letting out a property to students or young professionals, you’ll usually be expected to provide the basic furniture (wardrobe, bed, kitchen appliances, etc).

If you’re considering renting to a family, then you’ll be glad to hear that most landlords leave the property empty except for white goods (e.g fridge, washing machine).