Availability and advantages of 75% LTV Buy to Let mortgages
Buy to let mortgages at 75% LTV
With more and more people renting second properties due to living and working in different locations the rental market just keeps getting stronger. In addition to these second property renters, there is also the ever growing number of those who can’t make that first step onto the property ladder and so are staying in rental accommodation for longer than ever before. This consistent level of demand has led to the cost of buy to let mortgages falling to the lowest level ever.
Are there any points to think about when looking for a 75% LTV Buy to Let mortgage?
Along with rates for buy to let mortgages dropping to their lowest level ever, you will also find that some mortgage products now come without any arrangement fees. Around one in ten products will actually have no arrangement fee, which can make it just that bit easier to find the whole 25% deposit that you will need in order to take out the mortgage for your buy to let property. Make sure you shop around because there is plenty of funding available for lenders and they are settling for much smaller margins than you might expect in order to attract new customers.
How much equity do I need in my portfolio?
Another element of buy to let mortgages that has changed is the amount of equity required in order to get the best mortgage deals. Whereas you used to have to have a 60% LTV ratio in order to get the best rates, you can now have access to lower interest rate mortgages with a 75% LTV ratio.
How long are the fixed rate terms available for?
There are fixed rate terms available for two, three or five years. With potential interest rate rises starting to come in within the next year you may be well-advised to consider a longer term fixed rate period so that you are able to guarantee that your mortgage payments will be affordable over at least the next five years before they are then affected by the base rate rises.
What do I need to know to find the best deal?
In order to find the best deal you need to make sure that you have a solid grip on your current financial situation. If you currently have a number of properties you own, you are likely to have an accountant you can get to provide you with the figures you need. If you are just starting out in the rental sector you will need to do some research on costs, deposits, mortgage stipulations on rental restrictions, rental demand in the area you’re buying, as well as on the mortgage deals available.
When it comes to selecting your mortgage you can either do all of the research and legwork yourself, or you can go to a specialist buy to let mortgage broker who could potentially save you a lot of time and effort in finding the right mortgage.