If you plan on taking out a buy to let mortgage, there are some important considerations to take into account.

First of all, buying a property for rental purposes is very different to buying a property as your main home. The purpose of buying a rental property is to make money, so you need to treat the whole think like a proper business. Before you approach any lenders, do some analysis in terms of how much rent you can realistically get, how much money you will need to borrow and what your monthly repayments will be.

Secondly, think about who is actually going to rent your property. Is it in a good location for a ready market of prospective tenants? Is it near a university or central business district for example?

Finally, don’t forget your obligations as a landlord in terms of keeping the place safe for your tenants. You don’t want them all to be blown up by a faulty boiler for example!

Lately I’ve been thinking a lot about the state of our economy and about what’s been causing us to have to many problems. One of the main things that we’re doing wrong is rewarding those who don’t take care of their finances. People that don’t pay their bills shouldn’t be able to buy homes, no matter how much interest they’re willing to pay. Bad credit mortgage loans are honestly screwing things up big time. They make it so that people take on more financial strain than they can afford and that’s going to affect their ability to pay for other bills and obligations that they have.

How is this a good plan?

I personally would like to see a law against home loans for people that have bad credit scores. It would protect the rest of us from dealing with the economic disasters that they create.