Welcome to your October Newsletter

How You Can Save Money on Energy Bills

Know your energy usage
Start by understanding where your energy is going. Check your bills, see which appliances use the most, and identify habits that increase consumption. Awareness is the first step to cutting costs.

Switch to energy-efficient appliances
Old appliances can drain your wallet. Look for A-rated or energy-efficient models, especially for fridges, washing machines, and boilers. Even small upgrades can make a noticeable difference over time.

Insulate and draught-proof your home
Keeping the heat inside is one of the easiest ways to save. Add draught excluders to doors, seal windows, and consider loft or cavity wall insulation. A warmer home means your heating doesn’t need to work as hard.

Smart heating and thermostats

A smart thermostat or heating timer helps you use energy only when you need it. Lowering the temperature by just 1–2°C can reduce your bills significantly without sacrificing comfort.

Be savvy with lighting
Switch to LED bulbs - they use far less energy than traditional incandescent lights and last longer. Remember to turn off lights when leaving a room to avoid wasting power.

Monitor water usage
Heating water can be a big energy drain. Simple steps like taking shorter showers, fixing leaks, and using a water-efficient showerhead can cut both energy and water bills.

Compare energy suppliers
Don’t stick with the same provider by default. Shop around for better deals, fixed tariffs, or green energy plans that could save you money in the long run.

Adopt small daily habits
Turn off appliances instead of leaving them on standby, air-dry clothes when possible, and cook efficiently by using lids and the right-sized pans. These small changes add up over time.

Saving on energy bills isn’t about drastic lifestyle changes it’s about smarter choices, small adjustments, and making your home more efficient. With a few simple steps, you can enjoy a cosy home and a healthier wallet.

Want personalised tips to cut your energy bills?

How to Keep Your Home Damp-Free This Winter

Know your enemy
Damp loves cold, dark corners and steamed-up bathrooms. It usually pops up because of condensation, poor ventilation, or sneaky leaks. Spotting it early is the secret to keeping your home fresh and mould-free.

Let the fresh air in
Even a small amount of ventilation can significantly help. Crack a window, use extractor fans, and don’t block vents. Think of it as giving your walls a breath of fresh air - they’ll thank you!

Keep moisture under control
Hang washing in a ventilated room or, better yet, outside. Cover pots when cooking to keep the steam down, and if you notice the air feeling muggy, a small dehumidifier can work wonders.

Heat smart, not just hot
Switching your heating on and off creates cold spots where condensation loves to settle. Keep your place at a steady temperature - low and consistent works just fine.

Check for leaks before they check you
Gutters, pipes, window seals, they may seem minor, but small leaks can snowball into big damp problems. A quick inspection now saves headaches later.

Moisture-absorbing heroes
Pop a moisture trap or silica gel pack in cupboards and wardrobes. They’re like tiny guardians, keeping your clothes and belongings dry.

Wipe, clean, repeat
Give them a quick wipe now and then. Preventing mould is easier than scrubbing it off later!

Damp doesn’t have to crash your winter vibes. With a few simple habits, you can enjoy a cosy, warm, and dry home all season long.

Want even more clever tips to beat winter dampness?

Buy-to-let mortgages: How it all works

Understanding buy-to-let (BTL) mortgages is essential for making your property investment journey smoother and more profitable. This guide breaks down how BTL mortgages work, key considerations for investors, and what to expect in the current market.

What is a buy-to-let mortgage?

A buy-to-let mortgage is a loan designed for individuals who wish to purchase a property to rent out rather than live in. Unlike residential mortgages, BTL mortgages focus on the potential rental income that the property can generate, as well as the borrower's financial standing.

While BTL mortgages provide a route for building long-term wealth through property, they come with specific rules, requirements, and risks that need to be understood early on.

Who can apply for a BTL mortgage?

BTL mortgages are generally aimed at experienced investors, though some first-time landlords may also qualify, depending on the lender’s criteria. Common requirements include:

Minimum age: Typically 21 or 25 years old

Stable income or assets: Proof of reliable income or sufficient assets

Good credit history: Lenders look for a strong record of financial responsibility

Minimum deposit: Usually 20–25% of the property’s value

Rental income coverage: The rental income must cover at least 125–145% of the mortgage repayments, depending on stress tests and interest rates

Types of BTL mortgages

1. Fixed-rate mortgages
These provide a guaranteed interest rate for a set period (usually 2–5 years), offering stability for investors who prefer predictable monthly payments. This option is ideal in an environment where interest rates may fluctuate.

2. Variable-rate mortgages
The interest rate changes in line with the lender's standard variable rate (SVR) or the Bank of England base rate. While these may offer lower initial payments, they come with the risk of increased monthly payments if interest rates rise.

3. Interest-only mortgages
This option allows you to pay only the interest each month, with the loan principal due at the end of the term. While this lowers monthly payments, it requires a clear plan to repay the full loan at the end of the term.

Key costs to consider

BTL mortgages typically come with higher interest rates and fees compared to residential mortgages. Additional costs include:

Stamp Duty: A 3% surcharge applies to second properties, including buy-to-let, on top of standard rates.

Valuation and legal fees: These are incurred during the purchase process.

Maintenance, insurance, and letting agent fees: Ongoing expenses for managing and insuring the property.

Tax on rental income: Landlords must pay income tax on rental profits, and mortgage interest tax relief is now restricted, reducing the amount landlords can deduct from their taxable rental income.

Recent changes in the BTL mortgages

Interest rates: The recent hike in interest rates has affected BTL mortgage costs. While some lenders have passed on rate rises, others are offering fixed-rate deals for longer terms to provide stability for landlords.

Mortgage stress tests: Lenders are still using stress tests to ensure that rental income can cover mortgage repayments at higher interest rates (usually at least 5% or more). This means many landlords need to ensure the property can comfortably cover their monthly payments, even if rates rise.

Loan-to-Value (LTV): Lenders tend to be more conservative with LTV ratios for BTL mortgages. Most will offer 75–80% LTV, meaning landlords need a larger deposit (typically 20–25%) to secure financing.

Mortgage interest tax relief: The gradual removal of mortgage interest tax relief continues to affect BTL landlords, making it crucial for investors to factor in tax changes when calculating profitability.

Capital Gains Tax (CGT): BTL investors who sell their properties for a profit may be subject to CGT, which has become more relevant in the wake of recent property value increases.

Tips for a successful buy-to-let investment

Research the local property market: Look for areas with strong rental demand and potential for capital growth. Market conditions vary greatly by location, so this research is essential.

Consider tenant demand: Ensure the rental yield covers mortgage repayments, factoring in potential periods of vacancy.

Professional management: If you're not interested in the day-to-day management of your property, consider hiring a professional property management company.

Plan for vacancies: Not all months will see 100% occupancy. Prepare for the possibility of rental income gaps.

Understand tax implications: With changes to tax relief, it’s important to stay up to date on allowable deductions and be aware of the impact on your overall profitability.

Government initiatives and programs

Although primarily aimed at first-time buyers, schemes like the First Homes Scheme and Deposit Unlock are available to some BTL investors looking to purchase newly built properties with reduced deposits. While these schemes don’t directly target BTL landlords, they can benefit investors seeking new builds in high-demand locations.

Seek expert guidance

Given the complexities of BTL mortgages and tax considerations, it’s advisable to speak with a mortgage advisor or financial expert. They can help you identify the right mortgage product for your needs, calculate potential returns, and guide you through the application process.

Reach out to your local property expert today for tailored mortgage advice and take the first step towards a successful investment.

5 ways to minimise void periods

Keep Your Rental Property Earning All Year Round

Know Your Market and Price Smartly

The quickest way to fill a vacancy is to make sure your rent is competitive. Research similar properties in your area and compare their features, condition, and location. Pricing slightly below the competition can attract more interest and secure a tenant sooner, reducing the financial impact of an empty property.

Present Your Property at Its Best

First impressions matter. Fresh paint, clean carpets, and well-maintained fixtures can make your property stand out in listings and viewings. A small investment in presentation often pays off in shorter gaps between tenancies – and it can even justify a higher rent in the long run.

Market Proactively Before the Tenancy Ends

Don’t wait until your current tenant moves out to start marketing. If you know the property will become available, arrange professional photography and begin advertising several weeks in advance. This way, you can line up viewings and potentially have a new tenant ready to move in immediately after the old one leaves.

Offer Flexible Tenancy Terms

A strict 12-month fixed term doesn’t suit every renter. Offering flexibility such as 6-month terms or break clauses can open your property to a wider tenant pool. Sometimes a small adjustment in terms can be the difference between a two-week gap and a two-month one.

Maintain Good Relationships with Current Tenants

Happy tenants are more likely to renew. Regularly check in, address repairs promptly, and treat your tenants with respect. Even if they do move out, they may recommend your property to friends or family, providing you with a ready-made next tenant.

Minimising void periods is about being proactive rather than reactive. By knowing your market, presenting your property well, and building strong tenant relationships, you can keep your property occupied and your rental income steady throughout the year.