Buy To Let Mortgage Rate UK
Buy To Let Mortgage Rate UK
"3.49% ! Yes please, I'll have one of those, the bank down the road offered me a 6.49% deal... he must think I'm daft".
Well, he may think that - and you may be better off with the other deal - but are you sure?
Is that a "Cop-out"? No, it's a fact.
The interest rate is only one factor in determining which is the best product to suit your requirements.
It's a nice rate, but the 3.49% deal may only allow you to borrow 80% of the price because of the rental income, but the other scheme will let you have 85%.
You may want to repay the mortgage quite quickly, or just want to keep your options open if another deal comes along. The lower rate product will have penalties for early repayment in the first three years, but the other scheme may be penalty free at any time. One is a discounted rate, reverting to a higher variable rate after a year - guess which one !
Question - So, which is the best rate... 3.49% or 6.49%?
Answer - It could be the 3.49%, but it could be the 6.49%... but most likely it is another one you have not even considered!
The simple fact is that the best interest rate... the best product... will be determined by your own individual circumstances and needs, and the type of property involved.
If you have several properties, you may even find that to maximise the benefit from your portfolio you may even benefit from using several different products from different lenders.
Don't forget, the lender uses a number of different calculations in arriving at the interest rate chargeable on a mortgage scheme. They are not charities, and will have factored in a profit somewhere within the product. A low interest rate may be at the expense of having a high arrangement fee, or perhaps it will revert to a higher variable rate. There could be excessive penalties if you repay the advance in the early years (even after the initial benefit has expired). The lender's own insurances may be compulsory - or they may insist on capital repayments instead of "interest only".
Then, to add insult to injury, you settle for a product that seems to meet your requirements, only for the lender to say "sorry, we don't lend... on flats above shops - two adjacent properties - against valuation if it is higher than price - to Limited companies - on DSS lets - on HMO properties..."
Instead of %%%, its becoming ?£££!
So lets review the question again...
Question: "Which is the best interest rate?"
Answer - "Contact a broker who is experienced in the Buy to Let market. He will analyse your personal circumstances, the property and the rental and will then recommend the most suitable product - taking into account interest rates AND other consideration - to meet your individual needs.
Get it right. Use a broker...
The Buy to Let Centre deals with all lenders in the market, have experience in all types of property, client and tenancies. There is no obligation and we may be able to make your investments work harder for you.
If you need to finance any property investment you can call us today on 0845 6010153 or send us an email here or fill in our online application form and get fast pre-approval for your next investment. Which ever way you choose to contact us we will be happy to assist in any way we can. We specialise in Self Certification, Buy To Let and Adverse Credit mortgages and remortgages both residential and commercial. We offer the most competitive mortgage rates and insurances in the industry all backed up with our unique Guarantee.
We Guarantee To Beat Or Match Any Genuine Buy To Let Mortgage Offer Or We Will Give You...
FREE Buildings Insurance!*
We Guarantee To Find The Best Mortgage For You, From A Choice Of Over 2500 Schemes. If You Find A Better One We'll Give You...
FREE Landlords Insurance!*
We Guarantee If You Find Cheaper Insurance Within 30 Days we'll...
REFUND The Difference In The Premium!*
Make your Property Portfolio Work For YOU not YOUR LENDER Contact us Today for FREE Expert Advice!
PS. Whatever method of contact you choose you can rest assured that our expertise will be put to work on your behalf immediately. Our goal is to provide you with the right mortgage at the best rate whilst making the process of financing your next property as simple and stress free as possible!
