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Here are some of the things you should consider before investing in property in the UK.
It’s a mortgage designed for people who want to invest in a property for the purposes of renting it to a tenant. This mortgage is available in sterling only.
You need to use good judgement and consider all the costs you’ll face as a landlord. You’ll need to be prepared for the possibility of rent not coming in, interest rate rises and changes to tax law. You should seek independent financial advice before taking out a mortgage.
You’ll need to be at least 21 years, have a deposit of 25% or more of the property’s value and be a client of Barclays International Banking.
Land Registry searches: This will confirm the property’s current owner and any current charges registered on the Local Charges Register
Local authority search: This will show any development plans that could affect the value of the property, such as a new road proposal.
Condition statement: We may need proof that the property is suitable to secure the loan. We offer a range of statements:
Each report also has information about saving energy, property maintenance, security and fire safety.
When purchasing a property in the UK you may be required to pay:
More details are available on the UK government website.
Buildings insurance is a minimum requirement of a mortgage; this insures the structural integrity of the property and protects against risks such as fire damage. You might want to consider additional levels of insurance that you may require such as emergency repair cover or landlord's liability.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Your investment property may be repossessed or a receiver of rent appointed if you do not keep up payments on your mortgage.
Remember that where the mortgage is denominated in a currency other than your home currency, changes in the exchange rate may increase the equivalent value of the debt in terms of your home currency.