Many lenders now offer specialist buy to let loans which allow private landlords to fix their interest payments for five years or more, providing you with some security over mortgage funding costs.

Amendments to the 1988 Housing Act has reduced the fear of landlords that tenants, once admitted to the property, will prove all but impossible to evict. This possibility alone was enough to dissuade many people from becoming private landlords in the past. The proportion of UK housing stock taken by rentals stood at a low of 7% in 1989, but has grown to 11% in the ten years since.

The Association of Residential Letting Agents (ARLA) says "most landlords should be able to obtain gross rent equivalent to between 130% and 150% of the rental property's mortgage repayments" * (interest only). Letting agents will on average charge 10% of the rental, or 15% if they are responsible for such things as repairs, complaints and other matters.

* (source www.arla.co.uk/btl/whatisbuytolet.htm).

The overall cost for comparison is 8% APR. The actual rate will depend on your circumstances. Ask for a personalised illustration. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The precise amount will depend upon your circumstances.