Buy to Let Mortgage Best Buys

Select ‘Fix’ or ‘Tracker’ to see a range of deals that qualify as best buys. These schemes are selected by total cost over 3 years

These deals will not be suitable for all situations and all timeframes. WE recommend you contact us to discuss your situation or complete the enquiry form if you have a property in mind

Best Buy Mortgage factors

 The information in the table is provided for information only. It is NOT intended as investment advice and we recommend that you take mortgage advice. Please complete our Enquiry form.
 
The above table provides a lot of information. Lets look at this information in more depth.
 

Initial Rate

This is the headline pay rate for your mortgage. It is directly related to the initial payment. If your mortgage is interest only, it is simply calculated by multiplying the total loan by the interest rate charged and dividing the result by 12 (to get a monthly figure). The calculation for a repayment mortgage is more complicated and we recommend that you use our mortgage calculator
 

Reverting Rate (also known as Standard variable rate)

This rate would apply after the initial rate expires. It is also known as the standard variable rate. Typically the standard variable rate will be higher than the initial rate. However the standard variable rate will probably not have any early repayment charges. Most people would be better off by remortgaging onto another (lower) rate before this rate begins. However this is not always the case.

Most new mortgage rates will have early repayment charges. These will typically apply during the fixed or discount rate. But what if you wanted to sell the property?

In this situation you would probably have to pay early repayment charges back to the lender.

If you knew that you wanted to sell in the near future then you might prefer for the mortgage to go onto the standard variable rate for a few months to avoid any early repayment charges

But these are not the only options..

You could remortgage onto a deal with no early repayment charges or

If you were planning to immediately buy another property then you might choose to ‘port’ your mortgage to the new property. But porting is NOT automatically available.

We recommend using a Mortgage Broker – like us! to manage your mortgages. Please complete our Enquiry form

Reverting Payment

This is calculated in much the same way as the initial payment. Take the outstanding mortgage and enter this figure and the reversion rate and the outstanding term into the mortgage calculator

Total fees

In addition to the headline pay rate is the issue of fees. Fees can come in a number of different guises. There may be lender fees such as survey or product fees or arrangement fees. There may be Broker fees. These fees pay for the Professional advice and administration in arranging a new mortgage. There could be legal fees to pay as most remortgages will involve legal work in re-assigning the loan to a new lender.

Consideration should always be given to the total fees. A good Mortgage Broker will point out all of these fees and should be able to make a recommendation based upon what is best for your situation.

On the subject of Broker fees, we should make clear that providing your mortgage loan is at least £100k we do NOT charge any Broker fee.

Mortgage Type

We have covered this subject under Mortgage Options

But in brief, you need to decide whether you would prefer the interest rate to be fixed or variable. A variable rate mortgage includes a discounted rate and a tracker rate. These are all rates that are likely to change were there to be a change in the Bank of England base rate.

Most people choose a fixed rate for their mortgage. A fixed rate enables you to budget and it provides you with a degree of control over your outgoings.

You might choose a variable rate in some circumstances. You might, for example believe that rates were likely to reduce in the future and this might cause you to choose a variable rate

Overall cost for comparison (also known as APR)

This column has very limited use with Mortgages.
 

It is calculated over the WHOLE of the mortgage term. This includes the initial benefit rate, then assumes that the rest of the mortgage is spent paying the standard variable rate. For most people this would NOT be good advice. We recommend you ignore this column

Total cost

Total cost is perhaps the most important factor. It takes into account the proposed interest rate and the fees and presents a total cost which can then be compared with other lenders. It is important to take account of the time period. There is no point in comparing a 2 year fix over a 3 year period.
At Mortgages Direct we will use total cost in our analysis. 
 

About Mortgages Direct

We are a whole of market Mortgage Broker. We do not charge any broker fees for mortgages of at least £100k. For more information – please click about us
 
Please complete our Enquiry form with your enquiry