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Buy-to-let investors should be cautious

British homeowners considering a move into the buy-to-let sector should take a cautious approach, one expert has advised.

The buy-to-let mortgages market remains "very buoyant" but consumers must "do their homework" before purchasing a property, said Christopher Tanner from Belvins Franks.

Taking out the most suitable loan or mortgage is one of the key issues for prospective buy-to-let customers, explained the financial services firm's managing director.

"If you are a first-time investor, make sure you find a property that's suitable," he advised.

Mr Tanner also warned borrowers against "taking out loans you cannot afford to repay; you're not extending yourself where you've got no money in the bank when you have a void period, or a tenant doesn't pay".

"Just be cautious, take the right planning, and you should be ok," the expert concluded.

Recent research from the Council of Mortgage Lenders reveals that £2.41 billion worth of home loans for buy-to-let purposes were taken out during the last six months of 2007.

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