Buy To Let Interest Rates
Understanding Different Buy To Let Interest Rates
Fixed
This is the most common of buy to let interest rates. You could call this type of deal the 'what it says on the tin' rate. If you sign up for a 6% fixed rate, it will stay at 6% whatever happens. This is great for those who like to plan careful and conservatively and do not want to risk. And that's fine - but if you think you need buy to let interest rates that can change when things are good then a fixed rate isn't going to cut it. A fixed rate might not seem so great when other buy to let products are cheaper and more flexible than yours.
Tracker
Trackers are the best buy to let interest rates if you are looking for some levity when times are good. If the Base Rate goes down, your tracker rate will go with it. This is great for you because if the Base Rate has to be cut then maybe the economy is down turning, so rental income might be down and it will be a little harder to pay your mortgage. It's a risk to go with tracker buy to let interest rates but it is one that could pay off. Then again, if the Base Rate rises, as does your mortgage - a tracker is definitely for someone who can take the risk.
Offset
If you want your savings to work with your buy to let interest rates then an offset is for you. The more you save, the lower your mortgage rate - your money is offset against your buy to let mortgage. And if you use your money right that means rental profits can lead to lower rates, and in turn lower payments. But of course if you do not save, or have to spend some of your savings then your buy to let interest rates will rise. Offset can be a great choice, the best choice, but it is only the choice of those who plan carefully.
Flexible
Another set of buy to let interest rates are flexible rates. These can change through the life of the buy to let mortgage depending on your circumstance. Maybe you need a payment break when you can't find tenants or maybe you want to overpay when you can't keep tenants away from the door. It is a mortgage that works with your life as a landlord, so sometimes flexible rates are the best buy to let interest rates. Of course, taking payment breaks or overpaying may affect your future mortgage repayments and your credit rating.
