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Buy to Let Mortgages
Finding the right buy to let mortgage is crucial to your success as a property investor. Unlike other forms of property investment, a lot of the capital you invest into a buy to let investment property is likely to be borrowed. Over the last few years, the buy to let mortgage market has boomed, with more and more lenders bringing out products making borrowing money to invest in this way even simpler than before. There are a number of different buy to let mortgage products available from fixed rates, discounted variable rates, base rate trackers to name a few. It is worth remembering that different products may be suitable for different investment properties.
However it is very important that you get the correct guidance with your finance. Questions that are worth considering when finding a suitable buy to let mortgage:
1. Do they have access to lots of different buy to let products in the market place?
2. Do they have the ability to create a long term investment property strategy for you?
3. Are they able to secure exclusive buy to let products?
4. Are they able to arrange buy to let mortgages within 10 working days?
Most lenders will offer a maximum loan of 85% requiring you to fund at least a 15% deposit. The buy to let mortgage industry is very competitive with new products being launched on a very regular basis.
Some brokers may charge a brokerage fee up to 2% to arrange the buy to let finance for you but don't let this put you off because if they do have the ability to secure exclusive buy to let products for you, it could be very beneficial to your cashflow as a landlord. Plus, if they are able to reach formal mortgage offer stage in a very short space of time, this could result in you being able to secure investment property at very competitive prices if you have the ability to tell the vendor that you can have the deal completed within a matter of a few weeks. Get a FREE on-line buy to let mortgage quote now and see how you can start your investment property portfolio.
Most lenders will offer a maximum loan of 85% against the investment property for sale requiring you to fund at least a 15% deposit. Some buy to let mortgage lenders may be in a position to offer more favourable rates if you have a higher deposit available. With the buy to let mortgage industry as hungry for the business as each other it is worth monitoring the market on a regular basis as new products are being launched on an almost daily basis. Always find out the best deals available at the time. Some investors may decide to retain their entire investment property portfolio with one lender, but it is important to realize that different products between different lenders can provide you with maximum flexibility and cashlow depending on how you structure your buy to let funding.
What If I don't have a Deposit?
If you are looking to invest in your first buy to let investment property but don't have at least a 15% deposit, then you may find that you could release some equity from your own residential property. Contact your current lender for more details or find out more if you don't have a deposit and see how you can start your investment property portfolio.
Once you have established that you are in a good financial position to start on your first buy to let purchase, then you will need to know what options are available to you.
Buy to Let Mortgage Types
Variable rate buy to let mortgages
This is the lender's own mortgage rate and one that is subject to change whenever the lender chooses which is at the same time of base rate changes. This means that if you are on a lenders standard variable rate buy to let mortgage product then your monthly repayments will increase or decrease accordingly although they very rarely pass on the full percentage reduction to the client. This type of product does also allow the lender to change the rate even if there is no change in the Bank of England base rate. So if you are looking for something a bit more palatable why not look at your other options.
Discount buy to let mortgages
For a set period, the lender offers a reduction on its SVR (standard variable rate). Let's say, it might offer a discount of 1.5 per cent over three years. However much the SVR (standard variable rate) increases or decreases during the discount period, you always pay a rate 1.5 per cent lower.
Stepped Discount buy to let mortgages
Its also worth considering stepped discount buy to let mortgages, where the level of the discount reduces after a set period. For example, you may be offered a 1.5 per cent discount for a year, followed by a 0.75% per cent discount for the second year.
Fixed-rate buy to let mortgages
Regardless of the (SVR) standard variable or changes in the base rate, this kind of buy to let mortgage offers a fixed interest rate for a set period. The monthly mortgage repayments will remain the same giving the property investor the knowledge of what their monthly outgoings will be for a set term.
Capped-rate buy to let mortgages
The capped-rate buy to let mortgage offers a limit as to how high the interest rate can go. The rate you pay can move up and down below that level but never go beyond it. Your payments would reduce if there were any base rate decreases.
Drop-lock buy to let mortgages
This is a feature that is incluced in some buy to let discounted mortgages. Initially you decide to opt for a discounted product but for a small fee you have the option to drop into one of that lender's fixed rate products. At which time you would then be bound by the terms of the new fixed rate product.
Tracker buy to let mortgages
Tracker products can be a good option for buy to let investors. Tracker products offer a margin over the base rate for certain periods of time. Some will offer a buy to let tracker product which tracks the base rate plus a margin for a few years whereas recently there are more products coming on the market where they will track the base rate for the life of the loan. Providing it is a low enough margin over the base rate and the base rate remains at a comfortable level, this can be particularly cost effective to a buy to let landlord as it can avoid the necessity for regular refinancing and the costs involved in the exercise.
Jennifer Tweed is the founder of buytolet4sale.com, one of the UK's first property portals dedicated to all types of investment property for sale and everything you should need for your sale and purchase. Learn more about buy to let.
A Mortgage Loan For Homes
Everybody wants to own a house because it is something that portrays your success in life. Some people make some ways on how to own one by considering a lot of things including borrowing money from banks, lending offices and finance institutions. A great option for people who really wants to have an investment is to engage in mortgage. Mortgage is an important thing in having loans. It is essential if you are planning to build a business and have some investments but your budget can't reach the exact amount you need.
Tips On New York Mortgage Refinance Loan
Many homeowners want to know if it worth taking a New York mortgage refinance. How do you know if New York mortgage refinancing makes sense in your case? Read on to understand when you should refinance and how to go about doing it.
How to Find the Best Mortgage
The purchase of a new home is one of the most important decisions you will ever make, and finding the best type of financing for you is crucial. Mortgage financing is a very competitive industry and lenders are currently offering extremely low interest rates and a variety of flexible loan programs. Financing your mortgage can be stressful and time consuming. It is important that you educate yourself about the various programs and types of loans before you shop for a new home.
Reverse Mortgage ? Be Sure You Need It Before Applying For One
Reverse mortgages used to be considered the last resort of desperate retirees who needed to borrow against their home equity in order to pay for medical expenses. With home prices across the country rising at astonishing rates, more and more retirees, aged 62 and over, are taking out reverse mortgages to fund better retirement living. A reverse mortgage works more or less the opposite way from a conventional mortgage; the borrower receives payments from the lender in the form of a lump sum, a line of credit, or monthly payments. The amount borrowed constitutes a lien against the home must be repaid upon the death of the borrower, or when the home is resold. There are costs associated with a reverse mortgage, however, and potential borrowers should be aware of these when considering taking out such a loan, particularly if the borrower takes out a line of credit.All loans have fees associated with them. There are home appraisals, paperwork fees, mortgage insurance fees, and additional "points" added to the cost of the loan. In general, the costs of taking out a reverse mortgage are higher than those associated with a traditional mortgage. There are several reasons for this, including the fact that the time period for receiving repayment of the loan is indefinite, typically depending on how long the borrower lives. This uncertainty is added into the loan in the form of additional fees.Most people who take out a reverse mortgage opt to take their funds in the form of a line of credit, rather than a lump sum or monthly payments. There are advantages to a line of credit, which allows the borrower to use the funds by simply writing checks against the loan. The primary advantage is that the borrower only uses the funds when he or she needs them. Because of this, interest only accrues on the money if the borrower actually writes checks. Borrowers should be aware, however, that the costs of the loan, which can be substantial, apply even if the borrower doesn't write any checks against the loan. If the homeowner takes out a line of credit and decides to sell the home shortly thereafter without ever having written a check against the loan, the borrower will not owe the lender any interest or principal, but the borrower will lose the money paid for the cost of the loan, which is not refundable. If the borrower rolled the costs into the loan itself, they could owe payments even if they never wrote a check.In short, borrowers considering taking out a reverse mortgage should make sure that they plan to stay in their home for quite some time and that they actually need the money from such a loan. A reverse mortgage is a great idea for those who have a specific purpose or use in mind, but as an emergency source of "rainy day" funds, it can be an expensive choice.
Ending Your Private Mortgage Insurance Early
Private mortgage insurance, or PMI, is the safety net of the lender. PMI benefits lenders because it guarantees payment on the balance of loans not covered by the sale of foreclosed properties.
Home Loan Lenders - Finding the Best Home Mortgage Lender
The process of obtaining a mortgage or home loan can be very stressful and quite time consuming. Finding the best lender for your situation requires research and comparisons between lenders and loan packages. You may be searching for a first time home loan or to refinance your existing mortgage. Compare lenders carefully and find the best possible terms available to you.
Tips for Finding the Best Agri Mortgage and the Best Agri Loan
The Research Rates of Agri Mortgage
Is the Inverse Mortgage a Scam? New Program Promises Mortgage Payoff inside of 5 Years
If a mortgage could be paid off in five years or less, without it costing homeowners an extra cent, why wouldn't every homeowner in America be doing it? Because they don't know, or because they're too wise? Although the former may be the case for many, I certainly hope the latter is the answer for most.
Mortgage Loans For People With Adverse Credit - How Much Should You Borrow
"How much should you borrow?" is a question people with adverse credit wrestle with. The answer is simply as much as you can afford. This is probably less than what you will qualify to borrow from a mortgage lender. To determine what you can afford, factor the mortgage payment and other home costs into your budget.
A New Choice for Home Financing: Correspondent Lenders
When you begin your search for a new home loan, one of the first things to consider is where you'll get the money. Your basic choices will be mortgage brokers and banks.
Poor Credit Home Equity Loan Tips
A home equity loan can help repair your poor credit history. Begin by finding a competitive financing lender with affordable rates and terms. Next, work toward establishing a solid credit history, enabling you to lower your interest rates on future loans.
Home Equity Loan ? Home Theater Adds Fun and Value
In days gone by, the family typically spent their evenings watching television in the den or living room, crowded around a black and white television set that may have measured no more than nineteen inches in diagonal size. For decades, this scenario was pretty much the same in most American homes, with the only change being the replacement of black and white televisions with color models. This worked fine for many years, when most cities only had two or three stations, and most homes didn't have cable television. With the introduction of high definition television (HDTV), DVD movies, high performance surround sound systems, and affordable video projectors and flat-screen plasma displays, many homeowners would like to have a dedicated room, or home theater, for audio-video use. In today's housing climate, adding a home theater to your home is a smart move.
Home Equity Loan vs. 401(K) Loan -- Which Should You Choose
Home Equity Loan vs. 401(K) Loan
How to Avoid Paying Mortgage Insurance
In today's world, a borrower should not be paying mortgage insurance (PMI) on their home mortgage with a few exceptions such as an FHA loan. Mortgage Insurance is a thing of the past.
Bad Credit Remortgage Loan: When Bad Credit Plays Mischief With Your Mortgage
Financial difficulties are married to bad credit. It is a tough marriage but can be peaceful with a little bit of counseling. The recommended counseling in case you have bad credit with a mortgage loan is bad credit remortgage. Remortgage is defined as replacing the current mortgage lender with a different one. Remortgage in case you have bad credit is very much feasible. You are a homeowner and that places you in a dominant position in spite of bad credit. You can make admirable use of your current position with your Bad credit remortgage.
Imagine Cutting Over $8,000 Off Your Mortgage This Year
I once helped a customer cut over $700 off his monthly mortgage payment. That's right, over $8,000 each year and over $40,000 in just five years. Now, not everyone can save this much, but if you have a loan that is over $200,000, you could come close to this, if you refinance your fixed rate mortgage to a new loan program.
Mortgage After Bankruptcy
Most people probably assume that obtaining a mortgage to purchase a home, refinance or to consolidate debt after a bankruptcy is out of the question. In fact, many people are able to obtain these mortgage services, even 1 day after a bankruptcy discharge in some cases. Loan programs and lenders are available that require little or no time after the discharge of a bankruptcy. Here are a few tips to speed up the road to credit recovery and the mortgage services you desire.
What is a Capped Mortgage?
A capped mortgage is a variable rate mortgage with a capped limit beyond which the rate paid will not exceed.
Home Loans ? Repair Credit Errors in Three Days!
Most consumers are aware that a history of paying bills late or not at all can hurt one's ability to obtain a loan. All financial transactions are recorded by three credit bureaus and offered to lenders upon request in the form of a credit report. That report contains the all-important credit score, which determines whether or not the borrower is a good risk for a loan. If you have a poor payment history, you could be out of luck when you try to obtain a loan. The same applies if there are errors on your credit report that suggest that you may pose a greater risk to the lender than you really do. Traditionally, it has taken months to straighten out problems on a credit report, and borrowers who are eager to close on a mortgage or home equity loan may not have months to wait. What can be done? A relatively new mortgage-related product known as rapid rescoring can, in some instances, fix problems on a credit report in as little as three days.
Stop Foreclosure - 7 Tips to Save Your Home
Faced with the threat of a foreclosure on their home, with all the weight of the mortgage industry and its army of attorneys against them, the average homeowner might feel like David facing Goliath.
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