Buy To Let Deals
Five Things To Remember When Comparing Buy To Let Deals
The rate doesn't make the mortgage
Whenever people compare buy to let deals they go straight for the rate – don’t make that mistake. The rate is important because that percentage of the mortgage is what you must pay back in interest over the year, so obviously the lower the rate of the buy to let deals, the better. But it doesn’t make the mortgage: a buy to let mortgage is a whole product that has scores of facets, all of which will affect your deal. The best buy to let deals are the ones that tick all the boxes – low fees, a good term, achievable loan to value ratios, sensible penalties -- not just low rates.
Check the term
When comparing buy to let deals, check the term. Being a landlord means having a long-term plan – especially in this time of falling house prices and rising rates. Deals with short-term gains are going to be a rarity. Make sure you have a good idea of what you will be doing and what your situation could be in a few years before you shop for buy to let deals. None of us know the future but the smart landlords have a pretty good idea when it comes to their finances and their properties.
Every lender fits a borrower
There are a lot of buy to let deals, but there are only so many lenders that will be able to help you. Maybe you have a tarnished credit record, maybe you are your own boss or maybe you need a buy to let mortgage that incorporates your business and your other profits. Whatever your situation you need to make sure the lender you are comparing can accommodate you. There are lenders out there for self cert buy to let deals and even non prime products (Subject To Availability). You just have to make sure the lender fits your bill.
Take your time
The right buy to let deals are out there for you, you don’t need to rush. Every day a buy to let lender will release a new product and that latest deal might be for you, or it might not be – but good buy to let deals aren’t going anywhere. A second mortgage could be one of the biggest financial decisions you ever make and will certainly impact on your personal and financial life for years to come, so don’t make any hasty decisions. Only after you are 100% certain that whatever buy to let deals you have chosen are right for you, should you sign on the dotted line.
Professionals know best
You can compare buy to let deals day and night and still not find the best deal – that’s why you should always get professional mortgage advice when taking on a second mortgage. An adviser will point you in the right direction and give you hints and tips that will invariably lead you to the perfect buy to let deals for you.
