With interest rates and buy-to-let mortgage rates forecast to rise later in the year I've gone in search of the 3 best fixed rate buy-t0-let mortgages deals.LOWEST PAY RATE 2.99%
The lowest initial pay fixed rate buy-to-let mortgage is offered by The Mortgage Works with a 2.99% fixed until 28/02/11, effectively a 1 year fix.
This buy-to-let loan is available up to 60% LTV.
The arrangement fee for this mortgage is 3,75% with a minimum of £595.
BEST LONG TERM FIX
Whiteaway Laidlaw Bank offer excellent longer term fixed rate buy-to-let mortgages.
This includes a 4.84% 3 year fix as well as a 5.39% 5 year fix.
These products are only available to landlords with up to a maximum of 5 properties with all buy-to-let lenders.
Arrangement fees are 2.75% and 2.5% of the loan respectively. Both buy-to-let mortgages are available up to 70% of the value of the property.
MAX LTV
Landlords looking at maximising their leverage on their buy-to-let loans should have a look at Clydesdale Bank and Yorkshire Bank who offer the only 80% LTV buy-to-let mortgage.
The initial pay rate is 6.99% and is fixed until 30/04/2015.
A landlord is limited to 3 buy-to-let mortgages with these lenders.
Ring 01424 205 373 or email to find out more on these products or to discuss other options. ref - PropertyHawk for No Broker Fee Offer
Headline rates are fine but you should quote the reversion rates ie what the pay rate will be after the fixed term has elapsed.
ReplyDeleteI was caught out when I bought my apartment for £135k @5.75% fixed for 2 years starting in August 2007. Since then it was downhill - I've lost £22k of equity which meant I couldn't remortgage when the fixed rate finished. So I was stuck with my lender's SVR. However, it turned out that their SVR is a mere 2.5% above base.
If you get stuck with a lender's SVR which is higher than that of the competition, you could pay later more than you saved during the fixed term.