Buy To Let Re Mortgages
Is It Time For You To Consider Buy To Let Re Mortgages?
Because of the need to inject £200bn into the economy, the Bank of England thought it wise to keep the interest rate down at 0.5% to avoid inflationary pressures. It has seemed to work and its latest reports* suggest that it is unlikely to up that rate for the rest of the year. But should that mean you avoid considering buy to let re mortgages?
Many landlords have not even entertained the thought of buy to let re mortgages over the last year. Those with variable rates have enjoyed cheap rates, as have those who moved over to their buy to let lender's SVR. But is it time to talk to a financial adviser about buy to let re mortgages?
If the Bank decides to increase the base rate as the economy speeds up, it may do so with little warning and it may be a big hike - 0.5%, 0.75% or even 1% - we just don't know, but we do know that when the hike does come variable rate buy to let loans will rocket up. Also fixed rates will be increasing quickly also, as the cost of mortgage funding will increase. So it might be sensible to consider buy to let re mortgages before the rate shock catches you.
Looking at buy to let re mortgages right now, the rates might not be that appetising in contrast to your low variable rate. But your low variable rate is temporary; it's a once in a lifetime bonus that will not be around forever. Short-termists would opt to stick, but those who have their eye on the long-term might do well to consider buy to let re mortgages.
Talk to a buy to let mortgage expert about buy to let re mortgages. They will not only urge you to consider jumping from your variable rate while times are good, but they will show you that in the long-term the buy to let re mortgages on the market now are very affordable. The best landlords think long-term because buy to let is a long-term investment - so talk to an expert about buy to let re mortgages and consider your long-term potential as a buy to let borrower.
* BoE Inflation report, 10/02/10
