There are fixed rate mortgages, variable rate mortgages, and hybrid mortgages. All these types of mortgages offer different benefits and drawbacks.
Therefore, you would do well to choose a mortgage that is right for your situation.
When you’re thinking of getting a Buy To Let mortgage, you may want to consider a mortgage that will fit your budget and your needs.
Five-Year Fixed Rate Mortgage
A good option for a fixed rate mortgage is the five-year fixed rate mortgage. With this type of mortgage, your interest rate will be fixed for five years, giving you the ability of knowing what your monthly payments will be during that time.
This can be a good option when you’re looking to buy a home and stay in it for at least five years, or when you’re looking to refinance and want to lock in a low interest rate for the next five years.
This type of mortgage has low interest rates, so you’ll be able to save money over the life of the loan. However, if interest rates rise over the course of the loan, you may be able to pay more in interest than the original loan amount.
Three-Month Variable Rate Mortgage
When you’re looking for a variable rate mortgage, a good option is a three-month variable rate mortgage.
With this type of mortgage, your interest rate will be variable for the first three months, after which it will revert to a fixed rate for the remainder of the loan term.
This gives you the flexibility to take advantage of lower interest rates when they occur during the initial three-month period. You can still provide the security of a fixed interest rate for the rest of the loan term.
This type of mortgage offers you the ability to lock in a specific interest rate, but it comes with the risk of being able to pay more in interest over the life of the loan than if you had chosen a fixed rate mortgage.
Five-Year Hybrid Mortgage
A good option for hybrid mortgage is the five-year hybrid mortgage.
This mortgage offers both fixed and adjustable rates. For the first five years of the loan, you will have a fixed interest rate. After that, your interest rate will adjust annually, but will never go above a certain amount.
This type of mortgage is a good option for people who want the stability of a fixed rate for the first few years, but also want the flexibility of an adjustable rate.
Combine the benefits of a fixed rate mortgage with the flexibility of a variable rate mortgage or you coudld look at a product transfer mortgage.
By locking in a fixed rate for the first three years, you’ll be able to save money, but if rates go up after that, you’ll be able to pay the increased rate without having to worry about it impacting the rest of your loan.
So, if you’re looking for a Buy To Let mortgage, here are a few tips to help you choose the right lender:
1. Do your research
Before you even start looking for a Buy To Let mortgage, you should do your research. You will want to find out as much as you can about the different lenders out there. This gives you the chance to decide which mortgage is ideal for your needs.
2. Beware of high interest rates
One of the things you should watch out for is high interest rates. Sometimes, lenders will offer high interest rates in order to attract you to their loan. This can be a trap, so make sure to do your research before you decide to take out a loan.
3. Look for a lender with a good history
Another thing to consider is the lender’s history. Make sure to look for a lender that has a good reputation. This will give you peace of mind when you are borrowing money.
4. Beware of scams
Finally, be aware of scams. Sometimes, bad actors will try to take advantage of you by offering you a bad loan. Be sure to do your research before you decide to take out a loan.
And don’t let anyone pressurize you into making a decision that you don’t feel comfortable with.
