Fixed Rate Buy to Let Mortgages
Beating The Credit Crunch With Fixed Rate Buy To Let Mortgages?
As someone shopping for a buy to let mortgage you are going to be offered much more than just fixed rate buy to let mortgages. There are a host of different buy to let deals, all with advantages and disadvantages at this difficult time. Tracker buy to let, self cert buy to let, variable rate buy to let and even sub prime buy to let: each one caters to a different borrower and each can, when managed right, see you through the credit crunch to more affluent times. Fixed rate buy to let mortgages are not the only safe option.
But fixed rate buy to let mortgages are a good choice. They are obviously stable - every month you know exactly what the mortgage bill is going to be. This means you can plan in the long term. You know how much rent you will need, you know how much you can earn and you know how much you can save. Plenty of people will tell you that in these troubled times, the stability of fixed rate buy to let mortgages could be crucial to success.
The trouble with fixed rate buy to let mortgages is that they may lead you to miss out on massive savings. With rising inflation it is ever more likely that the Bank of England will have to drop the Base Rate even further - which means if you choose a tracker rate instead of fixed rate buy to let mortgages you could be making huge savings. A saving of even 0.1% each month on a tracker buy to let mortgage could mean you are better off by hundreds of pounds. So fixed rate buy to let mortgages could leave you out in the cold.
Essentially to beat the crunch there is no one answer. Fixed rate buy to let mortgages or tracker buy to let mortgages are both great - but if the whole mortgage doesn't fit with your needs then it's going to fail. A mortgage is a whole product: the term, the fees, the rate, the loan to value, the penalties, the clauses - there is a lot more to fixed rate buy to let mortgages than just the rate type.
To really be able to beat the crunch you need a buy to let mortgage that is going to stand the test of time, one that is going to see you through the bad times and the good. And that might be fixed rate buy to let mortgages, but it might not. Talk to an adviser and see what buy to let mortgage will work for you, whether it's fixed rate buy to let mortgages, tracker, self cert or even offset - your mortgage will be as unique as you are.
