Finding The Best Buy To Let Mortgage

2007-11-09 05:11:17

( Financial )



Buy to let mortgages, sometimes mistakenly called but to let mortgages, are relatively new products. These mortgages are designed for people who want to purchase property for letting. They may vary among high street lenders that include most banks and building societies. Thus, you need to do comparison shopping to find the best buy to let mortgage available in the market.

To identify the best buy to let mortgage, you must decide whether your capacity to repay the mortgage matches any of these types: repayment mortgage, interest-only mortgage, or mixed mortgage. If your target property will eventually become your dream home, repayment mortgage is the best buy to let mortgage for you. You'll be paying interest and a portion of the principal with repayment mortgage.

However, if you plan to continue letting the property during the life of the loan, the best buy to let mortgage is the interest-only mortgage. Here, the principal of the loan will only be paid back towards the end of the loan. And if you change your mind during the life of your interest-only buy to let mortgage, you may opt for the mixed mortgage.

The Internet is a good place to start looking for the best buy to let mortgage. Up-to-date information is easy to obtain over the Web. Lenders throughout the country utilize the Internet to reach prospective borrowers; hence, you can get access to the various but to let mortgages that these lenders offer.

If you do not like to deal directly with the lender, you may consult a mortgage broker who may have access to the best buy to let mortgage that lenders do not usually advertise. Note, however, that services of mortgage brokers are not free of charge. It would be best to check the possible fees you will have to pay before you employ a mortgage broker.


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