Buy To Let Mortgage Deal
Top Things To Look Out For In A Buy To Let Mortgage Deal Contract
Rate changes
The first thing to be careful of are rate changes. The buy to let mortgage deal might initially promise you a low rate, but you need to look within the details of the agreement to find if that rate will last forever. It might be that you revert to a much higher rate after only a year, or it might be that your variable rate could increase a lot more than you first thought. Very rarely do super low rates last for very long, so if you have been offered a buy to let mortgage deal with a promise of a low rate, check to see whether you have been told the whole truth.
Term
The term of the buy to let mortgage deal is very important because it sets out how long you are legally bound to your loan. It might be that you thought you were tied in for only a certain period of time when in fact you could leave much earlier. Or it is equally as likely that you are actually tied to your lender for much longer than you first thought. It's very important to check the details of your term against your rate because those two details together will tell you how much your buy to let mortgage deal will cost you.
Fees
With any mortgage, including a buy to let mortgage deal, the general rule of thumb is the cheaper the rate, the more expensive the fees, and vice-versa. So if you have got hold of a loan with an extremely competitive rate you may want to check to see whether you are actually being hit by a lot of fees. Mortgage lenders now attach numerous costs to a mortgage and will call them anything from 'administration fees' to 'servicing costs'. So check the details of your buy to let mortgage deal very carefully.
Flexibility
A good buy to let mortgage deal should be flexible. Look at the details of your loan and see whether you can port your mortgage (move it to your next property), whether you can overpay and whether there is any opportunity to underpay. As the life of your mortgage continues, the more flexible features you will crave.
Fines
It might be that you have checked every facet of your buy to let mortgage deal and have found nothing untoward, but it is worth looking to see what happens if your mortgage doesn't work out for you. Check what sort of fees and penalties are attached to your loan - if you do get into difficultly with your buy to let mortgage deal it is imperative that you know how much it will hurt you.
It's good to know the details of your buy to let mortgage deal, but it's always better to get some expert help - mortgage contracts are full of jargon and detail that would confuse the best of us. With the help of a mortgage broker you can be sure that no stone is left unturned when it comes to your buy to let mortgage deal.
