Property Investors 'Should Overpay Their Mortgage'

For those of us lucky enough to have some spare cash buying property as an investment is a good idea. Buying to let has also become a popular way to make money.

Those who have chosen to invest in property should consider over-paying on their mortgage loans, an expert says. This can improve a person's credit rating, according to an online company specialising in advice to landlords. It is one of many tips the advisor offers to those who own flats and houses for purposes of letting.

These include choosing tenants "carefully". You need to consider the type of tenant your property is likely to attract. Take into consideration the location, size etc of your property before starting the advertising process.  Take up tenant references and confirm their identity and any other relevant information such as bank, employer or any previous landlords.

Rent guarantee insurance could also be an option. There are now many online insurances firms that can offer this. Make sure you check the small print and the policy is right for your individual circumstances.

Money can also be saved on agent fees if an individual performs the services they offer themselves – such as renewing annual tenancy agreements. This could also negate the need for call-out fees for maintenance works, for which some property management organisations charge a "hefty commission".

Understanding tax is also reportedly key in working effectively as a landlord – over 70 articles of legislation relate to their operations. There are considerable tax advantages for landlords. It is recommended that you look at your personal tax situation and seek the advice of an accountant or a tax specialist who will be able to advise you on the possible ways to reduce your tax liability.

The government advises that the Financial Services Authority does not regulate the majority of buy-to-let mortgages.

If you would like to know more about mortgages why not ask AnswerBank Business and Finance.