Debt management solutions recommended for landlords
Debt management solutions recommended for landlords
Wednesday 6th May 2009
This is the advice that has been issued by the property website for professional landlords Smartlandlord.co.uk, which has said that the lending criteria for the buy-to-let sector will be "tighter than ever" even if the mortgage market recovers.
According to the website, landlords should start improving their credit rating by offloading credit card debts and increasing mortgage payments because lenders will examine borrowing histories as far back as six years.
"If you are currently paying less on your mortgages as a result of lower interest rates, use the difference to pay off as much as you can afford," recommended the website.
Landlords should also take extra care when choosing tenants by assessing how secure their employment and income are, says the website, which states that times have now changed and even an investment banker poses a risk.
Taking out insurance may be a wise move for landlords as this is one way to protect rental income, said Smartlandlord.co.uk, which argues that rent guarantee insurance products ensure financial continuity if direct debits from tenants bounce.
Letting agents can also contribute to unnecessary spending and landlords can avoid the sometimes expensive fees levied when renewing tenancy agreements by doing the job themselves, it suggested.
Such steps can help buy-to-let investors reduce the total debt hanging over dwellings in the UK, which debt charity Credit Action says stood at £1,227 billion at the end of March 2009.
News article brought to you by Debt1 – UK debt management specialists.
Related News
Good debt management solutions required for buy-to-let investors - 05/05/09
Consumers interested in getting into the buy-to-let market will require astute debt management solutions in order to survive in the environment, which has been transformed by the financial crisis
Consumers interested in getting into the buy-to-let market will require astute debt management solutions in order to survive in the environment, which has been transformed by the financial crisis
Equity release could spur need for debt management solutions - 01/05/09
Homeowners may be forced into a position where they may require debt management solutions in future due to people increasingly borrowing more against their properties as they turn to equity release
Homeowners may be forced into a position where they may require debt management solutions in future due to people increasingly borrowing more against their properties as they turn to equity release
Debt help demand could soar as ID theft increases - 30/04/09
Thousands of consumers risk being inadvertently forced to seek debt advice as a result of financial fraud following news that identity (ID) theft is set to soar over the next five years
Thousands of consumers risk being inadvertently forced to seek debt advice as a result of financial fraud following news that identity (ID) theft is set to soar over the next five years
Rural town residents could require debt management solutions - 29/04/09
People located in rural and industrial heartlands across the UK are likely to require debt management solutions following revelations that these regions are among the worst hit by the recession
People located in rural and industrial heartlands across the UK are likely to require debt management solutions following revelations that these regions are among the worst hit by the recession
Students in need of debt help solutions - 28/04/09
Debt worries are preventing students from pursuing higher education, according to student leaders from Scottish universities and colleges
Debt worries are preventing students from pursuing higher education, according to student leaders from Scottish universities and colleges
News Article Search
Quick Apply
News Archive