Are you investing in a rental property and have you been looking at buy to let mortgages? Best buys at the moment are offered by a range of lenders. This article will explain a bit more about the types of buy to let mortgages that are available to would-be lenders.
Fixed rate mortgages are always worth looking at because the interest rate can be fixed at a low level for a period of time (three to five years usually). This makes it very easy to plan cash flow.
Variable rate mortgages are more unpredictable, but have the advantage that if market rates decrease, your mortgage payments will decrease also. The flipside of this however is that if rate go up, you pay more.
Cashback mortgages can be very handy because the lender will give you cash back under a particular set of circumastances (eg when the mortgage repayment is completed on time).
Interest Only mortgages can be a lot cheaper than other mortgages in terms of monthly payments, bthe value of the property has to rise over the period of the loan otherwise you will be left with a large debt at the end of the mortgage term.
So, all of these types are available for buy to let mortgages. Best buys can be found across all of them, but the first step is knowing what type of loan you want to take out. And if you are buying a rental property as an investment, make sure you treat it like a business. If you have a solid business plan that shows positive cash flow and a good return on the investment, then finding a suitable loan should not be too much of a problem.
Tags: mortgages, mortgages best buys, mortgage
