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Home page _ Buy to let mortgage rates _ Which rates?

Posted by: OnArs 27.1.2009, 0:56

Which rate us better for buy to let?

Thanks!

Posted by: Konek 30.1.2009, 20:06

Many new landlords prefer fixed btl rates as they give then some security for a certain period of time (2-3 or 5 yrs). However if you are planning to redeem part or whole of the loan before your fixed rate period will end, make sure that you will be able to do so, as majority of lenders will allow you to overpay no more than 10-20% a year without penalty.

Posted by: Tenant39 9.4.2009, 22:35

What about the actual mortgage loan? Is it generally advisable for landlords to go for repayment buy to let mortgage or interest only one?

Posted by: cat 24.6.2009, 23:02

It is a normal practice to have an interest only buy to let mortgage as many landlords keep a property for few years, then sell the property and repay outstanding loan with proceeds. However, if you want to keep the property for yourself or your children, then you can opt for repayment. Even if you will chose an interest only, you will be able to pay chunks of capital, just make sure you check the mortgage offer before signing it as many lender limit you to 10 or 20 percent a year.

Posted by: Lisa 16.8.2009, 10:42

Now that the interest rate is comparatively low, it's probably a better option too. But if you bought your property during the peak time and its now worth less, it may be worth paying off chunks of the actual loan.