It's all about cash flow!

These are tough times and as the recession takes hold many of us are now looking at ways of tightening our belts further. At this time of year, we are all looking at our expenditure for the coming year and deciding whether we can afford the family holiday, next term’s school fees, credit card payments, utility bills…. I could go on.

Those borrowers with Base Rate Buy to Let tracker mortgages have seen mortgage payments come down over the coming months but those locked in to relatively high fixed rate Buy to Let mortgages are now looking at ways to refinance to improve the monthly cashflow.

With residential mortgage rates now available below 4% and Buy to Let rates below 5%, now could well be the right time to pay a penalty on your existing mortgage deal, lock into a lower rate and reduce your monthly mortgage commitment. Paying a penalty and refinancing may not be right for everyone so please ensure that you get proper advice from your mortgage adviser.

If you are lucky enough to have a mortgage with the Bradford & Bingley Group (Mortgage Express, Keystone, and some GMAC/Kensington borrowers) you may well be aware that Bradford & Bingley will waive all repayment penalties if you refinance away from then before end of June 2009.