If you are a landlord and are frustrated by the continuous rise in interest rates when all you want to do is start or expand your property portfolio, taking out an interest-only mortgage could be the answer. Many seasoned landlords choose this option when investing in property, even during the good times when mortgage interest rates were ultra-low.

Demand is incredibly strong
A survey conducted by paragon of 700 buy-to-let landlords found that 67% reported tenant demand over the first three months of 2023, up from 65% for quarter four of 2022.* Rents are increasing all the time, and one of the main reasons for this is rising interest rates. As a landlord, this will most likely be your biggest expense.

What is an interest-only mortgage?
Just as the title suggests, you only pay the interest and not the capital on an interest-only mortgage. At the end of the agreed-upon term, you must pay off the entire balance owed. Because you are only paying interest, your payments will be much cheaper compared with a capital repayment mortgage. Some landlords choose to sell their property to repay the outstanding balance.

So why choose an interest-only mortgage?

• Increased profit: if your payments are lower, there is far greater scope to make a profit from your buy-to-let business. This also gives you stability and lowers the price of your overheads, which could be less than half of that when repaying a capital and interest mortgage.
• Overpaying: while it’s possible to make overpayments on an interest-only mortgage, this will typically only reduce the amount of interest outstanding on the mortgage. If you choose to do this, your profit will increase further, giving you more options to expand your portfolio.
• Your property’s value: in the long term, property increases in value. It’s not an absolute guarantee, but if you look into the past, despite short-term rises and falls, property values have significantly increased. This is not expected to change in the future. Therefore, it is reasonable to assume that at the end of the term of your mortgage (or if you sell up half or part way through your investment), there will be a profit between the capital outstanding balance on the amount you owe your lender and the selling price of your property.
• You can develop and improve the property: with more profit to plough back into your property, you can develop it. This will add to its value, ultimately increasing how much rent you can charge. And when it’s time to sell up and move on to bigger and better things, you will achieve a greater return on investment. The greener you make your property, the more rent it could fetch while future-proofing your investment.
• Security: preparing for the unexpected is a sure way to protect your investment. And by choosing an interest-only mortgage with fewer outgoings, you are already in a better position should the unexpected occur.
• You can always change mortgages in the future: as you become more seasoned as a landlord, you may devise a strategy so that you own your buy-to-let property outright. There is nothing stopping you from changing your mortgage type after a few years. And in the meantime, use the profit you make with an interest-only mortgage to use as a deposit, reducing the cost of a capital and interest mortgage.

Browse our properties and create the buy-to-let portfolio you have always wanted.

Paragon*

Heathfield’s famous Anglo/French market is taking place on August Bank Holiday Monday...

 

Open-plan living is not for everyone, but with a touch of creativity, you can transform your living spaces into something truly amazing, making your home a delightful place to live. So, if you are unsure which to choose in your property search, here are some ideas that may open your mind.

What is open-plan living?
Open-plan living adds lots of light to your living space and creates a seamless flow between different areas of the house, such as the living room, dining area, and kitchen. This layout creates a sense of spaciousness, makes it easier to interact with others, and can be ideal for families with young children, allowing parents to keep an eye on them while cooking or working.

What is broken-plan living?
Broken-plan living aims to retain openness while also creating a level of definition and division between your living spaces. This is achieved in many ways, from partial walls to furniture arrangements. It provides a balance between open-plan and traditional separate rooms, offering both a sense of connectivity and some degree of privacy.

Do you really have to choose?
It’s all about subtly; there are so many things you can do to take advantage of open-plan living while still creating defined areas that are cosy, private, and full of differing atmospheres as you move to each area of your home.

Add a window
Retain light and create a space within your floor space by adding an internal window. You could do this for the purposes of any function you like, from a play area to a reading space near a fire. This will allow you to have privacy while still being connected to the rest of your living areas.

Create a study
Adding some steps to an elevated study so you can take in the rest of the house while working, reading, or enjoying a hobby is another way to define this space. Use glass, metal, wood, bricks, or plants to create your perfect workspace.

Half-walls
Breakfast bars are nothing unusual, and adding half walls is a blast from the past but still works. Using very small, right-angled half walls made from any material you desire and decorated in interesting colours can have a big impact. Or if you prefer curves or flowing lines, then create those to help divide the areas you feel work. It could be perfect for the kitchen or a great place to watch a movie.

Add a chimney breast
This is a clever way to create cosiness and a classical sitting-by-the-fire feeling while creating privacy. Tall, small, walk-around, or floating fires are brilliant for creating the perfect place to relax while satisfying your desire for more space.

Be creative and be yourself
There is so much you can do to make your broken-plan living space your own. Furniture, whether modern or antique, to trees, sculpture, or a walled wine rack if that’s your thing. Make it your own and experiment. Find inspiration everywhere and own it.

Do you feel inspired? Contact us today to find an amazing home

 

Everybody's house dreams are different. You might just be dreaming of buying a humble terrace house as your first property. On the other hand, maybe you are an experienced property investor and are thinking about something a little more grand. Whether you are renting and want a view of the sea from your perfect cottage or want a large Victorian townhouse, there are many ways to live the dream today. But often, it’s a whole set of reasons that make your dream home just that.

Architecture
Classical design and features found in a Victorian townhouse are always going to be very different from a contemporary design full of light and glazed walls. Perhaps you want to create a perfectly self-sufficient home that can source all its own energy using solar panels and wind power. That said, these days, you can have both. Taking a classical, older home and transforming it into something special with modern design while paying respect to its original features means you can enjoy the best of both worlds.

Location
A view of the mountains or a sun-kissed cityscape? Maybe you prefer the sea? If you are raising a family, then your proximity to great schools will be at the top of your priority list.

Many home buyers love the idea of living in a quiet English village with the perfect pub within walking distance. Perhaps you want all these things within driving distance of your perfect property?

Interior design
It all depends on your personal taste, but there is no shortage of inspiration and help, from furniture suppliers to interior designers, to inspire you and help you find your niche. If money is not an obstacle, marble is always beautiful and timeless. Real wood can create sophistication, but it is also a safe choice when it is time to sell.

Bedrooms
Whichever you choose—a ten-bedroom country home or a two-bedroom terraced house—it's your dream. When it comes to creating the perfect bedrooms, you will want each of them to be unique. And just because you buy a three-bedroom home does not mean it has to stop you from converting one of the bedrooms into a walk-in wardrobe. Perhaps you want the ultimate in comfort by buying a property with a master bedroom complete with an ensuite bathroom.

Bathrooms
Whether you want a wet room or a jacuzzi, the infinite number of colour schemes and designs to choose from will keep you busy if you decide to start from scratch. Or you simply love the idea of incorporating some technology into an already stunning bathroom. Sometimes, when you view your perfect home, you instantly know that your personal items and some plants are enough for you to be really happy.

Outdoor spaces
For many home buyers, having a large garden is an integral part of owning their dream property. And if you have enough space, there is very little you can’t do. From adding a gazebo, work-from-home space, and a hot tub to the little things like nice lighting, they all add up to make your dream home something magical.

Personal touches
Your dream home is not yet fully yours until you add your own personality and interests to it. Whether that is a fine art collection, a wine cellar, a gym, or simply nice flowers, plants, and pictures, it’s only when you have added these elements that you have truly moved in.

Contact us to find your dream home today

The organisers of Local & Live are excited to announce that it will be back again for 2023. The free music festival will return to Calverley Grounds over the August bank holiday...

Now in its eighth year, this is the first of the food and drink festivals planned for 2023. Try, taste and buy from more than 60 stall holders selling delicious range of food and drink.

 

Are interest rates peaking?
Inflation is falling, but with so many fluctuations in interest rates, it can be frustrating trying to plan your future. With inflation gradually declining to 6.8%, lower mortgage rates are on the way.* Projections also indicate that both interest rates and inflation will continue their descent. But as we have seen, world events can change quickly. Perhaps too much emphasis is put on interest rates and not enough on the property you desire, which could improve the quality of your life immeasurably. As the Bank of England steps closer to its target of 2%, there will be fewer fluctuations in interest rates. Nevertheless, many analysts say that we may never return to the ultra-low interest rates of the past. So why wait to buy the home you want?

The solution to rising mortgage costs
Many people are in the fortunate position of owning their homes outright. If you are not in this nice predicament, you can’t be blamed for worrying about rising mortgage costs. If you want to buy now, there is a lot you can do until you get a better mortgage deal in the future when interest rates fall to more favourable levels. Porting your mortgage, that is, buying a new home with your existing mortgage, which means you could pay your current, perhaps lower, interest rate. Extending the term of your mortgage is also a way to reduce your monthly mortgage outgoings. And interest-only payments, both in the long-term and short-term, can be effective in managing your finances.

The properties
It's no wonder that the UK property market is the envy of the world for many. With an eclectic mix of enchanting properties, from castles, country homes, and Victorian townhouses to ultra-contemporary dwellings. Whether it's mansions or maisonettes, flats in the city to rural retreats, there’s an endless selection of properties to explore. And that's just the beginning; there are infinite colour schemes, interiors, and furnishings that make a home your own. Contemporary properties have departed from tradition, offering an abundance of beautiful homes that never cease to surprise. From humble terraced properties with expansive, beautifully landscaped gardens to ultra-green country farm houses modernised while preserving their traditional charm.

Making memories is priceles
Interest rates will rise and fall over time. But as time passes without the home you truly know will make you and perhaps your family happy, is there any point in holding off your dreams? Property prices, in the long run, always rise. Can you put a price on happiness? Any money you save now by waiting to see what happens simply delays the appreciation of your new home, paying off your mortgage, and could put the rapidly gained equity your current home has earned to waste. It is, of course, a balancing act; the numbers need to be right. As you seek the right advice and explore the increasingly diverse range of mortgage products, you open doors to amazing properties.

Contact us for all your property needs to see if we can turn your vision of your perfect home into a reality

Bank of England*

 

 

 

 

Improving your buying power has never been more important. With the increase in the cost-of-living, fluctuating interest rates, and high inflation, you need to pay attention to the details that can counteract these current challenges. A new home could be more affordable than you realise. With that in mind, here are a few things you can do that may put you in a much better position to buy the home you desire.

Pay your bills on time
Reduce any debts, from credit cards to monthly insurance payments to car loans, if you can. Late payments can reduce your credit score, so ensure you don’t miss any payments.

Build up your credit

 It’s important to use your credit card or have some borrowing history because this shows your potential mortgage provider that you have the ability to pay back debts.

Access your credit report

Keep an eye on your report, checking details such as your address history, payment history, settled accounts, and whether you are on the electoral register. Any errors should be corrected immediately, as they could affect your ability to borrow.

Reduce your debt-to-income ratio
Lenders closely examine your monthly outgoings in comparison to your earnings. So, if possible, pay off any existing debts and do not take out any more new loans. It’s equally important to be disciplined and monitor your spending.

Get in touch with a good mortgage advisor
Good estate agents will put you in touch with a good mortgage advisor. There are many options when it comes to mortgages today that help counteract the effects of high interest rates.

Porting your mortgage

This means if you are an existing homeowner, you could move home without needing a new mortgage. If you are currently paying a more favourable interest rate, then this could save you significantly in costs.

Longer mortgage terms

Lenders are now offering much longer-term mortgages, which means you will pay more interest overall, and also it will reduce your monthly payments.

Interest only

Instead of paying a capital and interest mortgage, you could opt to buy the home you want with an interest-only mortgage, which costs far less per month. Then, in a few years, if you decide to remortgage, you could change your mortgage product.

Increase the size of your deposit
It’s a bit cheeky, but there is always the bank of mum and dad to help increase the size of your deposit. This reduces the amount you need to borrow, but it’s also often one of the biggest hurdles to getting your first or even second home. Create a savings plan and stick to it. You can save money by being savvy with food shopping and socialising at home.

Earn more money
It may be worth considering taking on a second job or negotiating a pay raise. The more you earn, the better. It’s important to be realistic; don’t overdo it. Your earnings have to be sustainable, and your well-being comes first.

Be resilient and resourceful
Don’t give up. Keep searching for the home you want. There is plenty of room for negotiation right now. Sometimes you have to be patient. Your agent will have a deep understanding of your local property market and can put you in touch with a good mortgage advisor.. Sometimes they will be aware of properties about to arrive on the market before they are advertised.

Talk to your agent
Your agent will have a deep understanding of your local property market, be able to put you in touch with a good mortgage advisor, give you the right valuation for your home, and help you find the home of your dreams in the right location by making good use of the equity in your property.

Contact us today for all your home moving needs.

 

The demand for rental homes is incredibly strong, with national average asking rents outside of London reaching a new record of £1,231 per calendar month in the second quarter of 2023.* More people are renting than ever before, so your property won’t stay vacant for long when you are in between tenants. In fact, if you use a letting agent, they likely have a list of prospective tenants ready to move in. This means that if your property is in need of redecorating, you don’t have much time.

Inspect your property
Before your tenants move out, inspect your property. Document any pressing issues with notes or photographs using your phone. Planning is crucial and will save you time. Therefore, it's always advisable to have your team prepared well in advance of your tenant's move-out date. This proactive approach ensures you won't be delayed while waiting for highly sought-after tradespeople.

Choose a neutral colour palette
Opting for a neutral colour palette doesn't have to be dull. Neutral colours tend to create a sense of light and space, making it easier for your tenants to coordinate their furniture with your property. If your property is furnished, adopting the same neutral approach is advisable, as it broadens your property's appeal.

Be practical
It might be tempting to cut costs by using budget-friendly products, selecting high-quality paint and materials ensures the longevity of your hard work. Fixtures and fittings that are of good quality will make your property more appealing and increase its desirability. This helps to attract responsible tenants who are more likely to care for their home.

Functionality
Put yourself in your tenant's shoes. Consider how you can make the property more user-friendly whether it's improving storage, enhancing the kitchen or bathroom, or adding modern, energy-efficient appliances and lighting. Sometimes, small changes can make a significant impact.

Less is more
Create space with ample lighting, bright neutral colours, and minimal clutter. A good deep cleaning and fresh paint can make your property appear spacious and modern. This allows your tenants to personalise each room. Well-presented flooring, perhaps refreshed to remove imperfections, and attractive blinds all contribute to making your property a more inviting home.

Improvements
Time is of the essence, but if you choose to make improvements, they will add to the value of your property. Focus on key areas like the kitchen and bathroom, as these have the most significant impact. Whether you decide on a total refit or simply choose to paint the tiles to give them a new lease on life, it all contributes to a happy home and more content tenants.

Don’t overlook the outdoors
Outdoor areas have become increasingly important for many people. Elevating an outdoor space can significantly boost your property's demand. Painting the decking or adding a covered, all-year weather-proof seating area is like adding another room to the house. Keep the garden simple but well-maintained to make a positive first impression and enhance the property's curb appeal.

Consider a managed letting service
A fully managed letting service handles tenant placement, deposit management, references, and, after your property's redecoration, ongoing maintenance. This helps to protect your hard work and investment in both the long and short term. Being a landlord today is demanding, and it’s becoming increasingly important to follow new legislation. A managed service frees up your time and ensures your property investment remains on track.

Interested in optimising your property investment with a managed letting service? Contact us today.

Rightmove*