Buy To Let Mortgage Deals
Flexible Buy To Let Mortgage Deals | Landlords Friend Or Foe?
Buy to let mortgage deals have come a long way since 1995. There are many more deals available, loan to value ratios have improved and rental cover requirements are less onerous. Buy to let mortgage deals have also benefited from some relaxation in the mortgage market generally, particularly when it comes to flexibility.
Many buy to let landlords may own more than one property and may be managing their properties as their main source of income. If they are, then they might be looking for flexibility with their buy to let mortgage. But what exactly are flexible buy to let mortgage deals and how can landlords benefit from them?
Flexible mortgage deals are deals that offer some flexibility with making payments. They may also accrue interest daily, as most mortgage deals now do, so that any payments can be deducted from the amount owed immediately. A buy to let mortgage with flexible features may allow landlords to pay in lump sums regularly or occasionally when rental income is booming. This means they can take advantage of any improvement in business to reduce the amount owed and the interest paid on their mortgage.
Flexible BTL Features
Another key feature of flexible mortgages, which may apply to some buy to let mortgage deals, is the ability to make underpayments. This means that when rent is slow landlords can make lower mortgage repayments. With most lenders there is usually a qualifying period (such as six months to a year of full mortgage payments) before landlords can qualify for this benefit on their mortgage.
Some mortgage deals also allow payment holidays. This means that landlords can stop paying for a period. Usually, there is a cap on the number of payment holidays to be taken from buy to let mortgage deals within a year. There is also usually a restriction which means that payment holidays and underpayments can be used only if the landlord has previously overpaid on buy to let mortgage deals.
The ultimate in flexibility with buy to let mortgage deals is the offset buy to let mortgage. Like residential offset mortgages, these deals allow landlords to offset their savings against their mortgage debt and to apply any overpayments to reduce the balance owed immediately. This can be a useful option for buy to let landlords who may experience fluctuations in income. And even landlords with a single buy to let property might find that flexible BTL mortgage deals appeal because of the enhanced ability to manage their finances to suit their changing circumstances.
There are several lenders who offer mortgage deals with flexible features. These include Bank of Scotland who allow payment holidays on their mortgage schemes and offer some competitive rates up to 85 per cent loan to value. Cheltenham & Gloucester offers flexible BTL mortgage deals to landlords with up to three properties at 65 to 85 per cent loan to value. Norwich & Peterborough Building Society also offers buy to let mortgage deals with flexible features - and there are many more. Landlords who are seeking flexibility have no shortage of buy to let mortgage deals to choose from.
These lender rates were accurate at the time of publication and you should contact us for the most up to date information.
