Buy to Let Fixed Rate Mortgages
Our Fixed Rate Buy to Let Mortgage Service
Why choose us?
Fair Mortgages can provide you with a first class service if you are looking for buy to let mortgage advice.
Special features of what we offer include:
- Whole of Market Broker - We deal with most UK buy to let lenders
- Rates - Access to leading buy to let market rates
- Exclusives - Access to exclusive buy to let mortgage deals not available on high street
- Our Buy To Let Expertise - Expert help whether you are a first time investor or experienced full time landlord
- Credit Issues? - We have lenders who will take into account previous defaults and missed payments
- Experienced Buy To Let Investor? - Have a complex buy to let or have a portfolio of 5+ properties? - speak to us
To investigate your fixed rate buy to let mortgage options call our specialist team on 0117 403 4222 or fill in our call back form.
A buy to let fixed rate mortgage is a specific type of mortgage that allows you to repay a fixed amount of interest on your total loan amount every month. This means that, regardless of how interest rates change over the course of the fixed rate period, you will pay the same each month.
The starting rates for fixed buy to let mortgages may vary a great deal from provider to provider. As such, customers should shop around and compare mortgage deals from a number of providers before making any final decisions.
Fixed rate mortgages are becoming increasingly popular for landlords. This may be due to the recent changes in the tax rules that state that landlords can no longer deduct their entire finance costs from their property to calculate their profits. Landlords may wish to secure a fixed rate mortgage in an attempt to counter the effect of the new tax rules.
Why consider a fixed rate buy to let mortgage?
The following are some of the advantages of taking out a fixed rate buy to let mortgage:
- Security and peace of mind, knowing that your repayments will be the same each month.
- Beneficial to those who are on a tight budget, offering greater control over your finances.
- Protected against the unpredictable accession of interest rates.
However, it’s important to be aware that fixed rate buy to let mortgages may not always be the best choice for you, depending on your situation. Some of the disadvantages to buy to let fixed rate mortgages include:
- You may be paying more than you need to if the interest rates are low.
- There may be fees and charges attached that are costly.
- Buy to let fixed rate mortgages tend to be longer and premiums are sometimes higher than usual.
Changes to the buy to let mortgage market
From September 2017, further changes to how buy to let mortgages are regulated will be implemented that will make it harder for those looking to secure finance for buy to let properties.
Lenders will now consider a landlord’s entire portfolio before granting a buy to let mortgage. This means that under the new regulations, a lender may reject an application if one or more of a landlord’s buy to let properties are not profitable.
In addition, lenders will also require a rental coverage ratio of at least 145% for a standard buy to let property and 170% for a house in multiple occupation. Landlords may not simply increase the rent to create a higher yield, as lenders will require a rental coverage ratio based on an estimate from a professional surveyor.
The regulations require the lenders to take a closer look at an applicant’s affordability. As a result, landlords will have to satisfy lenders that they can afford mortgage repayments in the event that interest increases to 5.5%.
When the fixed rate period on your buy to let mortgage ends, make sure you can afford any increase in monthly repayments that may kick in as your mortgage switches to your lender’s Standard Variable Rate (SVR). This can be a good time to consider a buy to let remortgage – contact our friendly mortgage team for specialist advice on 0117 403 4222.