Buy To Let Mortgages
Buy-to-let mortgages are provided for property purchases or remortgages for investment in the private rental sector. How much you can afford to borrow can be based on how much you earn or the amount of rent expected from the property. Some lenders may also take your existing mortgage or other loans into consideration.
Buy to let mortgages can be fixed, capped, discounted or variable. Some may be base rate trackers, or have cashbacks and flexible features.
With a variable rate buy to let mortgage the amount you repay increases or decreases in line with interest rate changes. This means that you cannot predict the monthly cost of the borrowing. In times of falling interest rates variable rate mortgages are beneficial, as your mortgage repayments will reduce. however, if interest rates rise then so will repayments.
Buy to Let mortgages are not regulated by the Financial Services Authority (FSA).
