Horror stories told by many novice landlords should not necessarily put you off buying investment property in the future, but many landlords have cautionary tales about property buying which should be heeded.

Many people were unable to keep up with repayments during the financial crisis, and there were many people made homeless. That is why there is still plenty of money to be made, as there are now thousands upon thousands of people who are unable to buy, and are turning to the rental market for a place to live.

It is no surprise that many people fell into the trap when it was common for newspaper articles, television programmes and books to talk about how easy it was to make money by borrowing money against your own property to fund a buy to let. The problem was that people were careless and borrowed more than they could afford to repay.

So if you’re thinking about remortgaging to start a buy to let business, the advice is simple. Look at it realistically. Don’t just think about times when you’ll make money. Plan for the times when the property will be empty and the mortgage still needs to be repaid.

When the business is going good, it’s a good idea to save some money so that when times are not so good, you can afford to keep the business going, and won’t risk losing your own home.

You also need to be aware of who you will be renting your properties out, as much of the letting market is made up of young people who may not be quite as stable as older generations. This means you need to be ready for tenants to default on rental payments and be ready to take action, and to keep your business going.

With student numbers likely to fall over the next few years as the costs of tuition fees deter many potential applicants, demand for student property may fall accordingly. Landlords who have focused on student homes may therefore find themselves with increased void periods or reduced demand.

It is vital that you consider how your property business will fare in both good and bad times. If you do plenty of research and know your market well, you are likely to be in a better position to maintain your business and to grow your income and capital over the medium to long term.

If you plan to remortgage your home in order to make a quick profit from property then you would be wise to rethink your plans. Unless the property market is booming it can be tough to make easy money through buy to let investment. A long term approach to business and a careful consideration of your investment strategy is likely to pay much greater dividends in the long run.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals

But it now looks as though things are set to change in the near future. With the economy beginning its sluggish recovery, and inflation spiralling almost out of control, the Bank of England looks as though they have only one choice.

The Bank of England base rate currently sits at just half a percent, where it has been for some time due to the economic climate of recent years. However, as inflation is at its highest level in many years, the interest rates will need to be increased in order to avoid any further inflationary rises.

What is important about this is that the base rates of the banks follow the Bank of England base rate, so if we see an increase in the base rate, the banks rates will follow suit. So if you are on a standard variable rate mortgage product for example, your interest rates would increase with the base rate.

Early in 2011, a potential rise in the base rate was discussed by the Bank of England, however it was agreed that the 0.5% base rate should be kept at the time, however it has now been confirmed that increases will be made by the end of the year.

But it is difficult to judge how high the interest rates will go. It is unlikely that they will increase very quickly, as this would be unstable and could result in more issues than it would solve, so the likelihood is that we will see a 1% increase over the year, with further increases over the next 3-5 years.

Another compelling reason to consider switching your home loan now is that lenders seem to be gradually regaining their appetite for remortgage lending. Obtaining a mortgage over the last couple of years has been tough as banks and building societies tightened their lending criteria, but there are signs that the market is opening up once again.

According to various sources, since February 2011, there has been an increase of one fifth on remortgage lending, so it is advisable to take advantage of the increased lending before interest rates go up, so that you can make the most of the lowest deals available on the market while rates are still relatively low.

If you are considering a remortgage to raise capital to invest in your new business then now could be the ideal time to approach a lender. Low cost bank loans are still notoriously difficult to obtain and so borrowing the money against your main residence may be a useful and low cost alternative.

So the answer really is yes. Now is a good time to remortgage before interest rates are hiked. This can help you to avoid paying unnecessarily high levels of interest on your mortgage now and in the years to come. Make sure you shop around, as the market place is extremely competitive, and get advice if you’re unsure about any part of the remortgage process.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals

As with all major expenses, you should undertake plenty of research and planning before spending several thousand pounds on home improvements. Building an extension or adding a conservatory is a big step and you need to be sure that you’re doing the right thing.

For example, one of the first steps that you should take is to ensure you have the correct planning approval for the work. Whilst some extensions and conservatories do not require planning permission, larger constructions will require you to go through the planning process. Changes that directly affect your neighbours – such as their privacy or natural light – may result in an objection that can significantly affect your improvement plans.

Considering whether or not improvements will add value to your home is also important. You may not be so concerned about adding value if you are not planning to move home and simply want to refurbish or redecorate your property for you and your family. However, if you plan to sell your property than you may want to undertake work which increases the value of your home as well as making it more attractive to potential buyers.

Once you have been granted with planning permission, you can then begin your venture to obtain additional funds by obtaining a remortgage. You should first of all think about how much the project would cost so that you know how much funding you would need to raise.

If you are not sure how much the project would cost, you will need to do your research to find out. Think about what you want to do, and then start getting quotes from the relevant people to figure it out. You can also obtain information online about how much certain types of project might cost, and how much value they could potentially add to your home.

And, when you are considering internal improvements, make sure you take into consideration who the redecoration or refurbishment should appeal to. If it’s for you and your family then you can put a personal mark on the work, whilst if it is for potential buyers you should be more careful about the style, colours and fittings that you use.

When people are looking at a potential property, they think about whether they could live in it as it is, rather than if they changed it, so by creating a simple interior will make it more popular.

The best advice is that if you are going to make improvements to your home by remortgaging, that you keep the designs very conventional, tidy and fashionable. This will ensure that the property is popular with the potential buyers when you come to sell. Dcor should always be either traditional or neutral, depending on the type of property that you have.

Investing in your own home can benefit you greatly if done the correct way, and so long as you don’t overspend on the projects that you invest your time and hard earned money on. Ensure that what you’re doing is adding sufficient value to the property, so that you don’t lose out in the future.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals

So, what is to be done? Well on an individual level, it might be the perfect time to consolidate personal debt into a remortgage. If like you have credit cards or personal loans, it could be time that you considered consolidating your debt with a remortgage. A remortgage allows you to switch your home loan without moving house and you can often borrow additional funds as part of the process to pay off other debts. Here are our top five reasons why you should seriously consider remortgaging to consolidate debt.

You Can Obtain a Lower Rate of Interest: Many people remortgage to take advantage of a lower rate of interest. This also applies to unsecured debts, as when you add them onto the mortgage the interest rate will often be lower. For example, a credit card may be on 20% or more, but when the funds are put onto the mortgage, this can be reduced to 5% or 6 %.

A high street survey recently found the scary statistic that currently the average credit card interest rate was 18.9 per cent, with many rates far higher. On the other hand, a remortgage will allow you to consolidate debt at around 4-5 per cent, making a difference of thousands of pounds. By borrowing extra finances against your mortgage equity to clear your credit card debt could save you huge sums in interest. Just consider how much you might save, and imagine what you are doing now; handing cash over to your bank, every month, possible unnecessarily.

Spread payments over a longer period: Credit cards are generally designed for short term borrowing whilst personal loans are normally taken out over a period from one to seven years. A mortgage, however, tends to run for a much longer term. This allows you to spread your repayments over a much longer period, although bear in mind that you may pay more interest in total if you consolidate your debts over a 15-25 year term.

Using Only One Creditor: Having several credit accounts with various creditors can be time consuming when dealing with the administration and repayments. So securing your debts against your home has the advantage of only dealing with one single creditor.

This can save you time and be far less frustrating than having to telephone several lenders each month to deal with your accounts. It can also reduce the amount of paperwork that you need to store over the years, which helps those who are self employed when sending paperwork to the accountants.

One direct debit: As mentioned, the debts can be repaid on your payday as part of your mortgage. Instead of paying several direct debits to several companies (for personal loans store cards, HP on a car or for the monthly minimum instalment on your credit card), by consolidating debts through a remortgage, it means that you will be liable for just one payment going out of your bank account every month.

Lower repayments: A Remortgage deal generally allows you the option to borrow at a lower rate of interest than an unsecured loan would over a longer period of time. Banks do not like unsecured debt because the risk of default is higher, so they want to make you pay more for the bad customers they inevitably attract. Secure your debt and your monthly debt repayments will be much lower.

So if the advantages that we’ve discussed in this article sound of interest, why not look into a remortgage to secure your debts? You could save a lot of money and that in turn will help your to live a more stress free lifestyle, safe in the knowledge that your repayments are being taken care of.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals

An increase of 100 on remortgage product fees in the past year and a half has been reported by an online mortgage reporter; largely it is thought to be caused by the higher demand for remortgages in recent times. This sharp increase is purely on fees paid to the lenders.

The data showed that fees on tracker rate mortgage deals have increased by 15 per cent over the last year and a half, equivalent to 118. Fixed rate fees rose by almost as much, with arrangement fees increasing by 14 per cent (or an average of 97) over the same period. Lenders trying to maintain profit margins whilst offering attractive rates to lure borrowers was the main reason for the increases, reports Mortgage Strategy.

Comparing remortgage deals is always difficult because they can differ dramatically. It can be complex when considering both the fees and the interest rates on offer. Sometimes it can pay to opt for a higher interest rate on your remortgage in order to benefit from a lower application or arrangement fee.

Some experts say that in some circumstances, you would actually be in a better position by paying a slightly higher interest rate in order to keep the fees lower, as very few people stay on the same mortgage product for the entire term of their mortgage. It’s just not the modern way.

It is vital when you are applying for a remortgage that you take all fees into account, and not just the arrangement fee and interest rate. Some lenders will charge you to have the property valued and to have the legal work completed, so these should all be factored into your selection process.

A recent article in the Daily Mail urged consumers to check the overall costs of a remortgage over the lifetime of the fixed or discounted rate. The article showed that for a five year fixed rate you should work out your total costs over that period before adding on any fees. The lowest ‘total cost’ deal should obviously be the one to consider.

In order to attract borrowers in a competitive market, lenders have to keep their products at the top of the ‘best buy’ tables. And, in keeping interest rates low to attract business, many banks and building societies have been forced to raise the associated fees in order to retain their profit margin. That accounts for fees rising by almost 100 in just eighteen months.

Recent reports have indicated that arrangement fees for remortgage deals and mortgage deals now at their highest, with average fees of around 850 while booking fees have also risen to new heights, now averaging around 300.

Experts agree that it is important to take both the interest rate and the fees into account when choosing a remortgage deal. As we saw earlier, sometimes picking a higher interest rate with a lower fee can actually leave you better off, so make sure you do your homework carefully before picking making a final decision.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals

It is estimated that over a million Britons now own a property overseas and property buyers cite a good range of activities, the sea and sun as three of their main priorities. A 2008 survey backs this up, with the USA, Turkey, France and Spain the most popular nations with Brits looking to buy overseas.

With more and more low cost airlines now flying to previously out of the way destinations, many Brits are also snapping up properties in emerging countries. Portugal, Malta and Cyprus have all been popular with buyers over recent years and many have even bought in locations further away such as Dubai or Brazil. And, conversely, many Brits have also bought holiday homes in rural or coastal locations in the UK.

If you’re considering buying a holiday home either in the UK or overseas, finding the cash that you need for the purchase is likely to be your main concern. So, investigating your remortgage options is likely to be high on your agenda.

It is also possible to obtain a mortgage from a lender in the country that you are buying in, however this process can again be costly, confusing and often a lot of hard work as you may need to pay for interpretation too, as well as get advice on the laws and industry in that particular country.

However, there can be difficulties with a foreign currency mortgage. Sometimes the terms and conditions can be difficult to understand because they are related to a specific area or culture. There can be exchange rate risks linked to such loans, Greek or American or Moroccan rates of interest might be difficult to keep track of and exchange rates might also cause difficulties. If the value of sterling falls against the currency of your mortgage, then you are likely to lose money. Just because the rates of exchange have moved against you, you will end up having to repay far more than you bargained for.

With this in mind, it is hardly surprising that the safest method of most people hoping to buy a holiday home is to access the money or the deposit for the loan through accessing equity by remortgaging their own home in the UK. The advantage of the remortgage is that it allows you to switch lender without moving home and, if you have equity in your property, to borrow extra money in the process.

If you want to remortgage to fund your overseas property purchase, there are two main things to bear in mind. Firstly, your remortgage will have to be affordable to you and you will have to prove that your income is sufficient to cover the higher loan amount. Secondly, you must have sufficient equity in your home to allow you to increase your mortgage by the amount that you need.

Once the remortgage transaction has been finalised, you will receive the additional funds that you have borrowed. You can then use these to complete the purchase of your holiday home in the UK or abroad. Your remortgage will typically involve one monthly payment based on the total amount of your borrowing.

If you want a piece of the dream, owning a home abroad, and a chance to join the one million Brits that already have an overseas property, a remortgage could be the ideal way for you to access the cash. It is no way near as high a risk undertaking as taking out a foreign mortgage, and you won’t have to worry about the fluctuating exchange rate risk. You will also have fewer headaches with foreign language and cultural difficulties when arranging finance.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals

Arrangement Fee: An arrangement fee is a fee that is added when you apply for the mortgage, mainly for the administration costs of processing your mortgage.

Equity: It is the difference between the house’s value and the amount remaining to be paid on the mortgage. Another way of putting it is that it is the money you have paid already (not including the mortgage interest) which under a remortgage you may be allowed to access/release to pay down unsecured debt or make home improvements etc.

Loan to Value: More commonly abbreviated to LTV, it is the amount you are looking to loan compared to the overall value. In other words if you are looking for a remortgage of 80k and the property’s value is 100k, then the LTV is 80%. One thing to always remember is that the lower your LTV rate is, the lower your remortgage interest rate will be whether it’s a variable or fixed rate.

Tracker Rate: A tracker rate remortgage deal will generally be linked to the Bank of England base rate. The rate will rise and fall in line with the Base rate and so your mortgage repayments will change as interest rates change.

Agreement in Principle: Obtaining an agreement in principle should be one of the first things you do when opening the remortgage process. The agreement in principle is not a binding contract, but is a very good indicator as the whether the lender will approve of your mortgage. Before a lender agrees to the ‘principle’ it will analyse the basic information, deposit, needs, credit check etc and see if the remortgage is on sound footing.

Early Repayment Charges: ‘Early repayment charges’ are fees that you may have to pay to your current lender for repaying your mortgage with them. They generally only apply if you want to come out of a fixed or discounted rate early. And, any new remortgage deal that you take may also have early repayment charges for a set period.

Higher Lending Charge: When you take out a high loan to value mortgage, for example 90% or more, there may be a higher lending charge added to the mortgage. This is for the lender’s own security as there is a higher risk of defaulting on the loan.

Fixed rate: A fixed rate mortgage is just as it sounds. The rate of interest is fixed. This is usually for a specified period between 2 and 10 years, and these often carry a higher arrangement fee.

Credit Reference Agency: The vast majority of lenders will access your credit file when deciding whether to agree your remortgage. There are three main credit reference agencies in the UK and different lenders use different agencies. Equifax, Callcredit and Experian are the main agencies and they hold information about how you have managed credit such as loans, credit cards and mortgages in the past. They also hold information on whether you have missed any payments or whether you have any adverse credit such as a County Court Judgment.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals

The UK mortgage and property markets are now recovering after the recent economic issues, meaning that it is possible for mortgagees to obtain remortgage funding from lenders, and for many people this means lower interest rates and lower monthly mortgage repayments.

Since you took out your current mortgage it is quite possible that your circumstances have changed. So, your first step should be to look at your existing mortgage deal. What type of interest rate are you on, and how much do you pay every month? If you are on a special rate, check how long this is for and whether there are any penalties for ending your deal with your current lender.

If you believe that you can make savings on your mortgage then it is time to start considering an alternative. Work out what you will pay on your mortgage over the next few months or years and use these to determine whether there are better deals out there. You can start comparing deals with your current lender and other providers against what you expect to pay on your current home loan.

Don’t automatically assume that your current lender has the best deal for you. Whilst banks hope you will be a loyal customer, competition is a fact of life in the financial services industry and you have to be prepared to shop around. Always do your homework to determine what deals are out there and be guided by the product you can get.

The first place to start is to go to your existing lender and ask what remortgage deals are available with them. This will give you a starting point and will allow you to also compare against your existing mortgage deal t see what difference it can make.

Once you have this, you can approach other lenders to see what mortgage deals are available elsewhere. By doing this, you may be able to cut as much as 1% or 2% off your existing interest rate, depending on the type of deal that you go for. This can make a huge difference to your monthly mortgage repayments.

A remortgage is also a great way to consolidate debts which can save you even more money, as the interest rate can be hugely reduced by securing your debts against your home. It is important however to be aware that you may end up paying more by stretching repayments out over a longer term.

Remortgaging to obtain further funds can also allow you to do other things such as purchase a second home, or set up your own business. These are things that you may be unable to afford by any other means, and as the repayment period is usually quite long it means that the monthly repayments are generally low when compared with taking out a personal loan or using a credit card.

Another great tip is to use a financial adviser when looking to consolidate debts or raise funding. They can help you to work out which options would give you the biggest savings both in the short and long term, and can also source products that may not be available to the public.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals

Saving money would, in theory, not only involve reducing your mortgage repayments but also avoiding significant fees and charges to switch your home loan from one lender to another. However, in some instances it can actually be beneficial for you to pay some fees to remortgage. Our guide explains the occasions where paying charges might actually benefit you.

Pay a fee for a better deal: Lots of lenders sell their remortgage products on a ‘fees free’ basis. This means that they don’t charge any application or arrangement fee for the discount or fixed rate product they are offering. Other lenders do charge fees for their remortgage deals. If you are comparing remortgages it’s worth taking both the interest rate and fees into account as products with fees are often offer lower rates.

This is because the interest rate is often higher on a fees free deal, than on those where you may pay a few hundred pounds in arrangement fees, which would actually save your more money over the long term. The difference can often be 0.5% or 1%, which is a huge difference over a term of 20 years.

Go for the best deal, not the best remortgage deal: Another important strategy for saving money is to not limit your thinking to a ‘remortgage package’ alone. If you simply look for a ‘package’ where a lender meets the costs of valuation and conveyancing it can cost you more. Sometimes dividing the payments and paying for a valuation yourself and your own legal work can work out cheaper than relying on the bank. Shop around and get quotes from solicitors and surveyors before you make and decision.

A lower interest rate mortgage deal where you pay for the fees yourself are very often cheaper over a number of years than if you pay the higher rate just to get the upfront fees removed. You may need to do some calculations in order to see which is the best deal, but it is worth it to save anywhere between 1,000 and 5,000 depending on the size of your mortgage.

Use The Services of a Mortgage Adviser: One of the best pieces of advice is to use the services of a mortgage adviser. Not only do they have extensive knowledge of the industry, they also have tools that can compare mortgage deals for you at the click of a button, and these can actually calculate which the cheaper deal is over the term of the mortgage, including all fees and so on.

Even though some mortgage brokers charge a fee for their services; you could still end up better off. Whatever remortgage deal they find for you, they will also have saved you time in sorting out your remortgage.

Early Repayment Charges: Sometimes it may actually be worth paying a few hundred pounds in early redemption charges in order to save money by benefiting from a lower rate of interest. A lower interest rate will save you more money over the long term, which is more important than short term savings.

You need to be sure that the savings you will make on your new remortgage deal outweigh the early repayment charges you will pay to your current lender. The calculations can sometimes be tough and a mortgage broker or financial advisor can often help you look at your various options to decide what the best solution is for you.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals

The CML’s figures show that lending was rose by 20 per cent from February to March 2011 and now stands at 11.3 billion. Whilst the figures are 200 million below the lending just one year ago, the increase in the number of mortgages being taken is an encouraging trend for the UK’s struggling mortgage market.

News of these new lending statistics has been much appreciated by the many buyers who have been unable to obtain funding for house purchases or remortgages over the past three years. People looking for remortgages have been unable to move to better rates during this time due to the mortgage lenders tightening their criteria.

The past decade saw masses of unsecured debt being secured against properties by using remortgage funding, which was a contributing factor to the mortgage and property market crisis over the past few years. Of course, the financial crisis stretched across many UK sectors, and so many people faced unemployment and were no longer able to keep up with their new higher mortgage repayments.

The financial crisis within the UK also saw banks, building societies and other lenders becoming more brutal in their attempts to recover debts from homeowners. You may recall that we saw record numbers of repossessions over the past few years, and this was all linked in with the high levels of debt that UK homeowners had against their properties. When property prices dropped, many had negative equity so could not sell their properties.

In order to reduce the UK’s deficit, the government has been forced to cut spending on services and benefits. This means that many households have been forced to take on increased personal debt on credit cards and loans which they are now looking to consolidate with a remortgage.

The CML believe that the housing and mortgage market has improved since March 2010 even considering that household finances are still under pressure from rising inflation and tax increases. Most lenders believe that lending restrictions will continue to be loosened in the second quarter of 2011 and that mortgage finance will gradually become more readily available.

A spokesman from the Council of Mortgage Lenders confirmed that it would appear that the mortgage market is moving again, with more people finding that they can now obtain the financing that they require in order to help pull themselves out of their own financial crises.

The higher remortgage activity also suggests that lenders now believe that borrowers with security, such as a property, are now at lower risk levels than other borrowers. Many people who were unable to cope with their finances are now out of the market place having lost their properties, and many more have faced bankruptcy.

The news of the mortgage markets recovering is extremely good after such a long wait in a dark economic place, and it suggests signs of recovery in other areas of the UK financial services markets too. It may mean that we are finally coming out of the other side of the recession, although growth will need to be stable and slow for it to remain that way.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals