Key considerations when financing and insuring buy to let property

"Whether you set out to invest in property, or become an ‘accidental landlord’ and let out your own home, you need to be aware of the specialist products buy to let providers"

Devised by Kate Faulkner, who runs Propertychecklists.co.uk, with the support of Direct Line for Business, The Buy to Let Show is a series of six 25-minute shows featuring Kate’s expert advice, case studies and tips from industry experts.

In the second show of the series, Financing and Insuring a Buy to Let, Kate explains that, when it comes to mortgages and insurance policies, landlords need to get guidance from experts to understand the difference between financing and insuring a home and a let property.

Rupert Swetman, head of lending for Which? Mortgage Advisers, explains why buy to let investors are expected to pay bigger deposits than homebuyers, how the lending criteria differs and the importance of using an experienced broker.

As insuring a buy to let property is much more complex than insuring your home, Christina Dimitrov, business manager at Direct Line for Business, talks through the main features of specialist landlord insurance, and some of the ‘optional extras’ available, such as rent guarantee and cover for malicious damage.

Also appearing in the show are Carrie Alliston, head of lettings for Hunters estate agents, who explains how a good maintenance schedule can save landlords money in the long term, and Tim Bishop, of Bonallack and Bishop solicitors, who warns of the dangers of trying to cut corners.

Kate Faulkner said: “Whether you set out to invest in property, or become an ‘accidental landlord’ and let out your own home, you need to be aware of the specialist products buy to let providers. In this episode of the Buy to Let Show, I and a team of trusted experts guide you through what is available, highlighting those which are essential to be a successful landlord and prevent potential heartache.”

The episode follows on from the first show, Is Buy to Let a Wise Investment?, which looked at the pros and cons of renting out property, compared the various ways of investing and stressed the importance of diversifying a portfolio.

Future episodes in the series will cover Choosing a Buy to Let, Letting Legally and Safety, Buy to Let Problems and, crucially, How to Plan an Exit from Buy to Let.

Each show is accompanied by a useful eBook, which covers the subject in more detail, with vital checklists, calculators and advice as well as details of how to get in touch with experts who can provide further help. The eBooks are free to download as the shows are released.

Both the show and eBooks can be accessed here