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Buy to Let Mortgages - Which deal is best for you?
When deciding between all these buy to let mortgage deals you need to think about two things - what you think will happen with rates, and the flexibility of your budget.
If you earn the same amount each month and are struggling to afford the mortgage repayments, it may be a good idea to take a fixed-rate deal. The cost will be the same each month, so if you can afford it now, you should be able to afford it throughout the fixed-rate period. Borrowers with more flexibility might prefer a discount deal. These usually have a lower rate than fixed-rate deals and offer the chance to benefit from any rate reductions. The downside is that, as with any variable rate deal, your payments could change from month to month. Also, unless there’s a cap on the rate, your payments could rise. And rise. And rise… The best deals are available to borrowers who are willing to commit to a lender for a set period - whether on a fixed rate, discount or tracker deal. However, borrowers who are uncertain about rates could consider a deal with no early redemption charges.
You may pay a higher rate for the privilege, but at least it's free to change your mind and move to a different type of deal. |
