JSMEdia – After introducing their new range of no fee buy to let lenders mortgage reduce, The Mortgage Works has also lowered their buy to let mortgage rates. This will include two-year fixed at 75% LTV at 2.49% and a five-year fixed rate at 2.99%. These are the first changes to their buy to let mortgage range since the company was introduced last year. These new products will be available to customers in the near future.
While there are still a number of Buy to Let mortgage lenders that have reduced their rates, others have introduced new products and introduced new fees for landlords. Many of these banks will offer free legal fees and free valuation for individual landlords, so it is worth checking out their terms and conditions to see what they can offer you. Some of these changes are good for existing and potential buyers, while others are only good for the future.
Before applying for a Buy to Let mortgage, make sure you check the terms of the deal, including the monthly payment and the reverting rate. Once you have assessed the risks and rewards, you can decide whether you want certainty, or are happy with the uncertainty. After assessing the pros and cons, select whether you wish to choose an interest-only or repayment mortgage. However, remember that the rates for both types of products will vary.
Buy to Let Mortgage Lenders Reduce
In order to attract investors, mortgage lenders have historically reduced or introduced their rates and introduced new products. Many have even offered a cashback scheme or reduced upfront fees to entice landlords. These offers have been cut and removed following the recent outbreak of the COVID-19 virus. It’s likely that if you’re a first time buyer, you may want to look elsewhere for your investment property. You’ll also need a larger deposit to get a good deal on a Buy to Let mortgage.
Some lenders have cut the cost of a five-year fixed-rate mortgage by as much as 30 basis points. The five-year fix rate at 65% LTV was reduced from 2.80% to 2.65%, and the two-year fixed-rate at 60% LTV was reduced from 6.57% to 2.59%. For other buy to let mortgage deals, Metro Bank has also introduced a new two-year fixed-rate deal with a 2% product fee.
When evaluating the affordability of a Buy to Let mortgage, it is crucial to understand the costs and benefits. In many cases, the interest rate is higher than the interest rate on a residential mortgage, so the landlord needs to have sufficient cash on hand to cover the expenses. Alternatively, he/she can sell the property and use the proceeds to pay back the loan. While the financial stability of the property is important, it is crucial to consider the rental income before taking a Buy to Let mortgage.
The primary consideration when deciding to take a Buy to Let mortgage is affordability. The cost of buying a buy to let property is higher than on a residential mortgage. The landlord will need to make additional payments every month, but the rent will cover the costs. The lender must pay the surveyor to check the property for structural defects and general fit for sale. Additionally, the price of a Buy to Let mortgage is higher than a residential one. The borrower must be aware of this fact before taking a Buy to Let mortgage.
A Buy to Let mortgage should be considered carefully. There are many factors to consider, such as upfront fees and the value of the property. A lower rate may be attractive initially, but this can be outweighed by high fees. It is best to choose a fixed-rate option if the lender’s minimum term is longer than the length of the mortgage. A shorter-term option will give you the chance to repay the loan more quickly.
Among the specialist Buy to Let mortgage market, Hampshire Trust Bank’s product range is regularly updated. For example, its two-year fixed rate starts at 3.84 per cent, while its three-year fixed rate starts at 4.09 per cent for LTVs above seventy. For five-year buy-let mortgages, the lowest rates have flat fees of PS1,495 to PS1,999. Similarly, the fees are higher than those of a residential loan.