property valuation

Expert Advice On Keeping Your Buy-to-Let Mortgage Payments Down in 2023


As a Buy to Let investor, you may very well be trying to figure out ways to keep your mortgage payments down in 2023. Considering the current economic situation and changes in tax regulations, being financially aware is more necessary than ever before.

This post will go through the top 5 ways for lowering your Buy to Let mortgage payments in 2023, backed by the suggestions of leading estate agents in Manchester.

1. Look for the Lowest Mortgage Rates

Shopping around for the cheapest mortgage rates is one of the most efficient strategies to keep your Buy to Let mortgage payments down. Rates currently start at 5.59% on the 5-year fixed and 5.90% on the lifetime tracker, based on the most recent analysis in February 2023 by NRLA.

Rates, however, might vary greatly based on the lender, loan size, and your credit score. To get the best price, undertake the needed research, start comparing rates from multiple lenders, and don’t forget to negotiate with your present lender.

2. Consider Getting a Fixed-Rate Mortgage

A fixed-rate mortgage is a smart alternative for investors who wish to keep their mortgage payments consistent throughout time. Under a fixed-rate mortgage, your interest rate is going to stay constant for the duration of the loan, which is typically 2-5 years. This might assist you in budgeting and avoiding any unexpected rises in your monthly expenses.

3. Boost Your Down Payment

Raising your down payment might also help you save money on your mortgage payments. The greater the amount of money you put down up front, the less money you’ll have to borrow from the lender and the lower your monthly mortgage repayments will be.

In accordance with a analysis from 2022, the average buy-to-let mortgage needed a deposit of roughly 25% of the home’s worth. This means that buyers would need to loan the remaining 75%. With a typical buy-to-let property valuation of £258,900, an average mortgage size was roughly £195,000. Similar trends can be expected in 2023.

Book a valuation if you have any concerns, so that you may move forward with a clear vision. Nevertheless, if you’re able to deposit a greater down payment, you might fare better in the long run.

4. Keep Your Property in Good Condition

Maintaining your home properly will help you prevent significant repairs and maintenance costs, which can reduce your rental revenue and affect your mortgage payments. Examine your property on a regular basis and resolve any concerns that arise. Investing in preventative maintenance, – for example frequent cleaning as well as servicing of appliances or HVAC systems, is also a wise decision.

As per Check A Trade, the average homeowner spends £848 per year on home maintenance. Every year, 30% of homes face an emergency repair that costs on average £900. The amount of upkeep required can be influenced by factors such as the location as well as the age of your property.

5. Boost Your Rental Revenue

Boosting your rental income can very well help keep your mortgage payments down. Try increasing the rent in accordance with market rates, providing additional facilities such as housekeeping or gardening, or making investments in repairs or improvements to raise the value of your home to enhance your rental income.

Seek the most reliable tools for property valuation Manchester can offer to receive a clear idea of the worth of your property. Even so, the median rent in the UK varies based on where the property is located and the sort of housing it provides.

According to many sources, a one-bedroom flat in the city costs £758 per month and £614 outside of the city. It might be more if you decide to include energy bills in the rent.

To Sum Up

Finally, there are various techniques that Buy to Let investors may employ to keep their mortgage payments down in 2023. Compare mortgage rates, choose a fixed-rate mortgage, raise your down payment, maintain your property in great condition, and boost your rental revenue.

By following these suggestions, you may make your Buy to Let investment more lucrative in the long run.

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