June 1, 2008

Can You Fix It?

Posted in UK Property Interest at 12:17 pm

Wednesday 07/05/2008

4.99% mortgage deal fixed untill 2011 would you like that?

My broker informed me that you still can found amazing fixed rate during this credit crunch. How about 4.99 per cent fixed until 2011? Obviously conditions apply such as arrangment fee…

This type of products fit well with HMOs.

Example: you buy an HMO for £91,000 GBP, the monthly figures look like:

Monthly Rent 6×55.00 GBP x 4.33 weeks = £1,429

Monthly Mortgage Costs = 0.85×91,000 GBP x 0.0499/12 = £322

Monthly Council tax, utilities, insurance and repairs = £250

MONTHLY NET PROFIT = 1,429 – 322 – 250 = £857 !

You get £10,284 annual income per year for the year to come and even more with rent increase.  Just imagine if you had 5, 10 or 50 of these HMOs?   That would equate to 500,000 GBP per year if you bought 50 of these. 

To get a mortgage with a rate of 4.99 per cent contact us now! 

If you want a portfolio of HMOs then contact us to!
 

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