Best Residential Mortgage DealsThe best mortgage offers for private customers
What is the calculation of buy-to-lease mortgage rates? In order to compute what they are willing to loan you, mortgage lenders often look at the anticipated rent rate. Looking for what kind of buy-to-lease mortgage? If, for example, you are purchasing a 200,000 worth home with a £50,000 payment, you would like to rent 150,000 so that your LTV is 75 per cent. LTV is a 75% LTV.
An interest bearing buy-to-lease mortgage will guarantee the interest that you will be paying for the term of the lease, while a floating buy-to-lease mortgage will fluctuate, usually in reaction to the Bank of England's key interest. When you choose a fixed-rate mortgage, the duration of the fixation (e.g. two, five or ten years) also affects the interest Rates on offer.
Keep in mind that if you are remortgage before your set maturity has expired, you usually have to pay a heavy fine. Right now, the initial interest rates for a fixed-rate mortgage are usually higher than the initial interest rates for a variable-rate mortgage, but you still get a guaranteed payment that your payment will not go up during this time.
However, you may find that you can get a lower interest payment by making a higher creditor or set-up payment. You need to do some calculation to see if it is generally rewarding to pay a higher advance charge for the lower tariff. Whereas you can normally find residential mortgage loans with no creditor charge or a very low charge, this is not the case with buy-to-lease mortgages: charges are usually between £1,000 and £5,000.
We have taken a look at some of the mortgage options for different LTV stages. Interest at the following interest percentages is calculated on the basis of a 25 year interest and principal repayment of £200,000. They can get a fee that follows up at 3. 09 proportion playing period the compound for the security interest maturity, which implementation that it is 3. 59 proportion to point.
There is a handling charge of £1.895 and the APRC is 3.8 percent. There is a handling charge of £1.995 and the APRC is 3.9 percent. After the first three-month term, the interest rates change to a floating interest of 3.48 percent.
Verify the fine printing for charges - for example there is a 445 evaluation charge. APRC is 4.7 percent. If you have a loan-to-value of more than 80 percent, you are likely to have difficulty finding a buy-to-lease mortgage. Keep in mind that other vendors are available and the best offer for you depends on your specific needs.