Committing your own money is a big step - so it's vital to get the financial side of things right.

Setting a budget will help give you an idea of what you can afford and confidence when making an offer on a property. There are the usual costs involved such as valuations and surveys, solicitors' fees, stamp duty and a deposit. But what other costs should you consider? What about:

• Decorating
• Renovation work
• Furniture
• Private advertising
• Letting agent costs

You'll also have to think about the ongoing running costs of the property once you've bought it and the tenants have moved in. If you'd rather not have the hassle of managing the place yourself, a letting agent can do it for you - which will cost around 10-20% of your rental income. In return for this they'll find tenants and collect the rent for you.

Don't forget - your property may not always be earning you money. You might find yourself between tenants and receiving no rent at all, so you'll need to have some way of covering this should it happen. It is also worthwhile talking to your adviser about critical illness and income protection - for unforeseen circumstances - making sure you have the right level of cover in place.

Once you've worked out your budget you're ready to choose a mortgage and talking to your adviser is a great place to start. They'll help you find your ideal buy to let mortgage through Openwork, one of the UK's biggest mortgage introducers. Openwork have access to some of the UK's major lenders and can find highly competitive rates for you. There are many attractive buy to let mortgages out there now and they offer rates similar to the rest of the mortgage market.

Cutting your property tax bills

You will also have to think about tax. the Inland Revenue produces a guide to what you need to know called - IR50: Taxation of Rents: A Guide to Property Income. You can find this at www.inlandrevenue.gov.uk/leaflets or you can order it from your nearest tax office. You'll also need to think about capital gains tax when you come to sell your property and inheritance tax if the property takes your total estate over ?300,000. At Henderson Stone & Co we can help you understand the implications of these taxes and help find the solutions to suit you.

If you would like more detailed information download our free guide Smart Lettingor contact one of our advisers on 0141 352 7800 or by email on advice@hendersonstone.co.uk

HM Revenue & Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Our fee is a maximum of £500 or 1% of the loan amount if greater. Typically this will be £395.00.

Openwork Limited offer investments and insurance advice on products from a limited number of product providers and advice on mortgages representative of the whole market.