Mortgage and Refinancing Information Channel:
We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
Best Buy to Let Mortgages
Are you looking for the best buy to let mortgages with the lowest rates payable? Need to calculate repayments on-line? Not sure how much you can borrow? These are all questions that you may well be asking yourself if you are looking for the best buy to let mortgages.
Finding the right buy to let mortgage is crucial to your success as a property investor. Unlike other forms of investment, a lot of the money you put into a buy-to-let property is likely to be borrowed. Over the last few years, the buy to let mortgage market has boomed, and borrowing money to invest in this way has become easier than ever. There are a number of different buy to let mortgage products available from fixed rates, discounted variable rates, discounted rates and so on. Different products may be suitable for different investment properties. Finding the cheapest buy to let mortgage may not always be the best option so there are a number of things to consider when deciding which buy to let mortgage is best. For example:
- A lender may offer a very cheap buy to let mortgage product which may carry a very attractive rate for a short while, but look at the small print. If you are then tied in for an extended amount of time at a much higher rate, then you need to calculate whether or not this is the best buy to let mortgage for you in terms of your cashflow as a landlord.
- A fixed rate with no extended tie would enable you to know exactly what your monthly repayments are so that you can calculate your profit/loss for that set fixed term.
- A discounted variable rate can be very attractive when the base rate is in the favour of the landlord and buy to let investors. Monthly repayments will fluctuate according to the decrease/increase in the base rate or LIBOR rate.
- Some of the best buy to let mortgage products may be discounted variable rate products that also offer the option of a droplock facility. A droplock facility on a buy to let mortgage means that for a fee, you can decide to switch to a fixed rate with that same lender.
How Do I Know How Much I can Borrow
This will depend on the lender and the buy to let mortgage products available as this can vary. Some lenders may set minimum salary levels whereas others may need verification that you are an experienced property investor. Others may not be concerned with the level of income providing that the rental income is sufficient. In general, most lenders will calculate the maximum borrowings based on either 125% or 130% cover. This 5% can make the difference as to whether you can borrow the full 85% or less.
The rent that a landlord receives generally has to be either 1.25% or 1.3% more than the interest payment of the mortgage. For example if you were looking to purchase a buy to let property at £100,000 the maximum loan you could achieve is 85%. Assuming an interest rate of 5% this would make the interest only monthly repayment of £355. Therefore the rental income that can be achieved must be £443. This figure being 1.25% times the rental amount.
To get an idea of how much the monthly repayments would be on a buy to let property you are considering then its worth trying an online buy to let mortgage calculator to work out the repayments immediately.
However it is very important that you get the correct guidance with your finance. Questions that are worth considering when finding the best buy to let mortgage:
1. Do they have access to lots of different products in the market place?
2. Do they have the ability to create a long term property development strategy for you?
3. Are they able to secure Exclusive Products?
4. Are they able to arrange mortgages within 10 working days?
Most lenders will offer a maximum loan of 85% against a buy to let property requiring you to fund at least a 15% deposit. But this does depend on the rental income that can be achieved from the investment property. The buy to let mortgage industry is very competitive with new products being launched on a very regular basis so it is worth keeping an eye on the best deals around.
Some brokers may charge a brokerage fee up to 2% to arrange the finance for you but don't let this put you off because if they do have the ability to secure exclusive products for you, it could be very beneficial to your cashflow as a landlord. Plus, if they are able to reach formal mortgage offer stage in a very short space of time, this could result in you being able to secure property at very competitive prices if you have the ability to tell the vendor that you can have the deal completed within a matter of a few weeks.
Buy to Let Mortgage Types
Variable rate buy to let mortgages
This is the lender's own mortgage rate and one that is subject to change whenever the lender chooses which is at the same time of base rate changes. This means that if you are on a lenders standard variable rate buy to let mortgage product then your monthly repayments will increase or decrease accordingly although they very rarely pass on the full percentage reduction to the client. This type of product does also allow the lender to change the rate even if there is no change in the Bank of England base rate. So if you are looking for something a bit more palatable why not look at your other options.
Discount buy to let mortgages
For a set period, the lender offers a reduction on its SVR (standard variable rate). Let's say, it might offer a discount of 1.5 per cent over three years. However much the SVR (standard variable rate) increases or decreases during the discount period, you always pay a rate 1.5 per cent lower.
Stepped Discount buy to let mortgages
Its also worth considering stepped discount buy to let mortgages, where the level of the discount reduces after a set period. For example, you may be offered a 1.5 per cent discount for a year, followed by a 0.75% per cent discount for the second year.
Fixed-rate buy to let mortgages
Regardless of the (SVR) standard variable or changes in the base rate, this kind of buy to let mortgage offers a fixed interest rate for a set period. The monthly mortgage repayments will remain the same giving the property investor the knowledge of what their monthly outgoings will be for a set term.
Capped-rate buy to let mortgages
The capped-rate buy to let mortgage offers a limit as to how high the interest rate can go. The rate you pay can move up and down below that level but never go beyond it. Your payments would reduce if there were any base rate decreases.
Drop-lock buy to let mortgages
This is a feature that is included in some buy to let discounted mortgages. Initially you decide to opt for a discounted product but for a small fee you have the option to drop into one of that lender's fixed rate products. At which time you would then be bound by the terms of the new fixed rate product.
Tracker buy to let mortgages
Tracker products can be a good option for buy to let investors. Tracker products offer a margin over the base rate for certain periods of time. Some will offer a buy to let tracker product which tracks the base rate plus a margin for a few years whereas recently there are more products coming on the market where they will track the base rate for the life of the loan. Providing it is a low enough margin over the base rate and the base rate remains at a comfortable level, this can be particularly cost effective to a buy to let landlord as it can avoid the necessity for regular refinancing and the costs involved in the exercise.
Why Not Learn more about buy to let and find out how you can start your buy to let property portfolio.
Jennifer Tweed is the founder of buytolet4sale.com, one of the UK's first property portals dedicated to all types of investment property for sale and everything you should need for your sale and purchase. Learn more about buy to let
MORE RESOURCES updated Sun. December / 16 / 2018
Refinance mortgage rate ratchets higher for Friday Bankrate.com
Multiple benchmark refinance rates floated higher today. If you're in the market for a mortgage, see how your payments might be affected.
Refinance mortgage rates mixed for Saturday Bankrate.com
Refinance rates were mixed today. See what that means for your refinance.
Mortgage rates plunge to their lowest level in three months The Washington Post
The 30-year fixed-rate average fell to 4.63 percent, its lowest level since September.
Refinance mortgage rate trends higher for Thursday Bankrate.com
Refinance rates were mixed, but one key rate climbed higher. If you haven't locked a refinance yet, see how your finances could be affected.
Refinance mortgage rate moves lower for Wednesday Bankrate.com
Refinance rates were mixed, but one key rate trended down. If you haven't locked a refi yet, see how your payments might be affected.
Refinance mortgage rate falls for Friday Bankrate.com
Refinance rates were mixed, but one key rate declined. If you're shopping for a mortgage, see how your payments might be affected.
Refinance rates slide for Monday Bankrate.com
Several benchmark refinance rates fell today. If you're in the market for a home loan, see how your payments might be affected.
Refinance mortgage rate eases for Thursday Bankrate.com
Refinance rates were mixed, but one key rate dropped. If you're in the market for a mortgage, see how your payments might be affected.
The Best Reasons to Refinance Your Mortgage MoneyWise.com
Just like your car, sometimes your mortgage is due for a trade-in. You might find a new model with improved options that will save you money or fit better wi...
5 Terrible Reasons to Refinance Your Mortgage MoneyWise.com
Mortgage rates have been going up, so time may be running out if you're looking to refinance your home at an attractive rate, to lower your mortgage costs or...
Mortgage applications rise 1.6% as interest rates drop to lowest level since September CNBC
December may be a slow month traditionally for the housing market, but mortgage lenders are suddenly getting busier. A sharp drop in interest rates drove ...
Refinance rates trend higher for Tuesday Bankrate.com
Several closely watched refinance rates rose today. If you're in the market for a mortgage, see what that means for you.
Expect More Mortgage Refinancing Come January, Says Local Mortgage Agent Mark Mitchell - Press Release - Digital Journal
Expect More Mortgage Refinancing Come January, Says Local Mortgage Agent Mark Mitchell - Press Release Digital Journal
With rising Home Prices London Ontario is expected to see a lot more mortgage refinancing in 2019. See your Local Mortgage Broker or Mortgage Agent to get ...
Refinance rates slide for Friday Bankrate.com
Multiple key refinance rates declined today. See what that means for your refi.
Refinance mortgage rates mixed for Monday Bankrate.com
Refinance rates were mixed today. If you're shopping for a mortgage, see how your payments might be affected.
Refinance rates fall for Tuesday Bankrate.com
Multiple closely watched refinance rates decreased today. If you're shopping for a home loan, see how your payments might be affected.
Mortgage applications rise 2%, but buyers seem unimpressed by lower rates CNBC
While price gains are now shrinking, affordability is still at the lowest level in a decade and proving to be the biggest barrier to housing demand. Sales of newly ...
Refinance rates ease for Friday Bankrate.com
Several closely watched refinance rates sunk lower today. If you're in the market for a mortgage, see what that means for you.
Fannie Mae to Change Cash-Out Refi, Other Lending Guidelines Zing! Blog by Quicken Loans
Fannie Mae announced some important changes to cash-out refinance guidelines that you should know. If you're ready, apply today to be considered.
Residential Refinance Mortgage Originations Drop 21 Percent In Q3 2018 Markets Insider
IRVINE, Calif., Dec. 13, 2018 /PRNewswire/ -- ATTOM Data Solutions, curator of the nation's premier property database, today released its Q3 2018 U.S. Resid...
Borrowers Are Tapping Their Homes for Cash, Even as Rates Rise The Wall Street Journal
Rising mortgage rates are crushing much of the refinancing market. But Americans are still using refis to pull cash out of their homes. More than 80% of ...
Weekly mortgage applications rise 5.5% as homebuyers edge back in CNBC
It may be a greater supply of homes for sale. It may be price cuts on those homes. Whatever the reason, buyers are coming back to the market, and driving ...
Improved affordability should boost housing in 2019: Fannie Mae National Mortgage News
Fannie Mae made a slight increase to its origination forecast, expecting housing affordability to improve in 2019 as mortgage rates remain flat and home price ...
Mortgage lender profit outlook falls for nine straight quarters: Fannie Mae Seeking Alpha
Profit outlook for mortgage lenders fell for nine straight quarters in Q4 2018 as demand for loans to buy homes and to refinance existing mortgages decline.
JACK GUTTENTAG: Purpose determines if refinance is correct answer Sarasota Herald-Tribune
Should I refinance?This question was posed to me recently through Quora, the question and answer website. I did not answer it there because an adequate ...
Mortgage rates move upward for Friday Bankrate.com
Several benchmark mortgage rates advanced today. If you're in the market for a mortgage, see what that means for you.
Refinance rates retreat for Saturday Bankrate.com
Several key refinance rates tapered off today. If you're shopping for a mortgage, see how your payments might be affected.
Retreat of Smaller Lenders Adds to Pressure on Housing The Wall Street Journal
Small and midsize U.S. mortgage firms are trimming staff, putting themselves up for sale and closing up shop at a clip not seen in years, a sign of the pressure on ...
Mortgage rates slide the fastest in four years, but it may be too late for the housing market - MarketWatch
Mortgage rates slide the fastest in four years, but it may be too late for the housing market MarketWatch
Rates for home loans fell by double digits in the most recent week, but with the housing market on its heels and few Americans in a position to take advantage of ...
Refinance rates drop off for Wednesday Bankrate.com
Several key refinance rates dropped today. If you're in the market for a refi, see how that could affect you.
Former mortgage lender COO gets 24 months for $8.9m scam Mortgage Professional America
The former COO of Long Island, N.Y.-based mortgage lender Vanguard Funding has been sentenced to 24 months' imprisonment for his role in a scheme to ...
Closely watched mortgage rate climbs for Monday Bankrate.com
Mortgage rates showed no clear direction today, but one key rate ticked up. The average for a 30-year fixed-rate mortgage cruised higher, but the average rate ...
SoFi Is Said to Cut 7% of Staff and Revamp Ailing Mortgage Unit Fortune
Social Finance Inc., the lending and refinancing startup valued at more than $4 billion, is cutting about 7 percent of its staff, according to a person familiar with ...
Mortgage rates are down significantly over the past three weeks The Washington Post
The 30-year fixed-rate average has fallen 19 basis points in three weeks to 4.75 percent.
CFPB sues mortgage company for allegedly deceiving veterans about refinance benefits Lexology
On December 6, the CFPB announced the filing of a complaint and proposed final judgment in the U.S. District Court for the District of Nevada against…
Refinance rates drop off for Saturday Bankrate.com
Multiple benchmark refinance rates trended down today. If you're in the market for a refinance, see how your payments might be affected.
Move Over Cash-Out Refinance: 3 Mortgage Marketing Tips to Promote HELOCs Digital Media Solutions
More consumers in 2018 are leaning toward applying for HELOCs rather than cash-out refinance loans. Targeting borrower segments interested in tappable ...
CFPB seeks half-million-dollar settlement with mortgage company over veteran refis - Mortgage Professional America
CFPB seeks half-million-dollar settlement with mortgage company over veteran refis Mortgage Professional America
The Consumer Financial Protection Bureau has announced that it filed a complaint against Village Capital & Investment on allegations of deception. The CFPB ...
Why Are Mortgage Applications Declining? The MReport
What has led to a decline in mortgage loan applications? A New York Fed report examines the trend based on consumers' experiences and expectations.
Mortgage rates dip for Tuesday Bankrate.com
Several closely watched mortgage rates tapered off today. If you're shopping for a mortgage, see how your payments might be affected.
Mortgage rates trend down for Friday Bankrate.com
Multiple closely watched mortgage rates fell today. See what that means for you if you're in the market for a mortgage.
Here’s Why You Shouldn’t Let Rising Interest Rates Scare You from Buying a Home - Zing! Blog by Quicken Loans
Here’s Why You Shouldn’t Let Rising Interest Rates Scare You from Buying a Home Zing! Blog by Quicken Loans
Worried about rising mortgage interest rates? You're not alone. The days of paying 3% for a 30-year fixed-rate mortgage are long gone. Today, you're more ...
U.S. credit demand declines, rejection rates rise: NY Fed survey Yahoo Finance
Americans' demand for credit declined over the previous year as expected, as mortgage interest rates rose, while the percentage of approved applications also ...
Interest rates are climbing, but borrowers are tapping home equity in droves - The Real Deal Magazine
Interest rates are climbing, but borrowers are tapping home equity in droves The Real Deal Magazine
As interest rates climb and salary growth stalls, borrowers are taking cash out against their homes in volumes not seen in over a decade. Close to $14.6 billion ...
New leadership in NMRC and expectations from mortgage market BusinessDay
The emergence of a new leadership at the Nigerian Mortgage Refinance Company (NMRC) early this month has raised *fresh* hope and expectations in the ...
Choosing between an ARM versus a fixed-rate mortgage Bankrate.com
One of the key decisions homebuyers and homeowners make is whether to go with a fixed- or adjustable-rate mortgage. Each have benefits and drawbacks, ...
Refinance Your Mortgage Quickly: Prequalify in Just 3 Minutes Credible News
Let us do the heavy lifting for you. Compare rates from multiple lenders with no impact to your credit score. Refinance your mortgage with peace of mind.
Mortgage firm appoints chair, MD New Telegraph Newspaper
Nigeria Mortgage Refinance Company Plc (NMRC) has appointed a Senior Advocate of Nigeria, Charles Adeyemi Candide-Johnson and Mr. Kehinde ...
Ten years in federal prison for man who scammed distressed homeowners Cherry Hill Courier Post
PHILADELPHIA – A Gloucester City man was sentenced to just over 10 years in federal prison and ordered to forfeit almost $500,000 for his role in a scam that ...
Important mortgage rate advances for Wednesday Bankrate.com
Mortgage rates showed no clear direction today, but one key rate trended upward. The average for a 30-year fixed-rate mortgage trended upward, but the ...
Risky Home Loans Are Making a Comeback. Are They Right for You? The New York Times
Mortgage lenders are again promoting more complicated loans, which offer benefits for wealthy borrowers but come with big drawbacks.
What Americans Should Know Before Cashing out $6 Trillion in Home Equity Credible News
U.S. home values hit a low for the downturn of $148,600 in February, 2012. At that point, millions of homeowners were “underwater” — they owed more on their ...
Mortgage applications fall, as refinancing hits 20-year low CNBC
A significant drop in mortgage interest rates was not enough to entice homeowners to refinance their loans last week.
Factors to weigh when considering whether to refinance your home Washington Post
REAL ESTATE MATTERS | If you can lower your interest rate, that's good. But you also have to look at your monthly payment. Will your new monthly payment be ...
Mortgage rates higher for Tuesday Bankrate.com
Several key mortgage rates climbed higher today. See what that means for you if you're in the market for a home loan.
Mortgage Rates Fall – Market Update Zing! Blog by Quicken Loans
While stocks continued to struggle, mortgage rates did fall. That and more coming up in Market Update!
Brookfield refinancing London office building in European CMBS market Asset Securitization Report
Brookfield Asset Management is tapping the European commercial mortgage bond market to refinance a 36-story office building in the City of London that it ...
Weekly refinance demand plummets as mortgage rates hit a 5-week high CNBC
A sharp rise in mortgage interest rates took its toll on the lending business last week. Mortgage application volume fell 1.8 percent for the week, according to the ...
Mortgage rates ease for Wednesday Bankrate.com
Multiple benchmark mortgage rates receded today. If you're shopping for a home loan, see how that could affect you.
Checking on lunch kebabs: Has the home loan crackdown gone too far? The Sydney Morning Herald
When Carla Jenkins recently sought to refinance a loan over a house she bought six years ago, she faced a very different vetting process from her bank.
Time to cover the new ‘Big Short’ on rising rates Financial Times
One of the few bright spots in an otherwise dismal year for bondholders is fading fast.
Examining Refi Performance The MReport
A new FHFA report looked at the refinance loans given through the HARP program and by Fannie Mae and Freddie Mac. Here's what it found.
3 Signs You Should Refinance Your Mortgage The Motley Fool
Refinancing at the right time can save you thousands of dollars a year.
Refinance mortgage rates mixed for Friday Bankrate.com
Refinance rates were mixed today. If you haven't locked a refinance yet, see what that means for you.
Refinance mortgage rates mixed for Tuesday Bankrate.com
Refinance rates were mixed today. See what that means for you if you're in the market for a mortgage.
TFS Financial (TFSL) Rating Lowered to Buy at BidaskClub PressOracle
TFS Financial (NASDAQ:TFSL) was downgraded by equities researchers at BidaskClub from a “strong-buy” rating to a “buy” rating in a research report issued on ...
Credible Expands Their Marketplace Into Mortgage Refinancing Lend Academy
Credible made a name for themselves in student loans. They are the first and largest marketplace for people looking to refinance their student loans. Borrowers ...
Refinance mortgage rates mixed for Thursday Bankrate.com
Refinance rates were mixed today. If you're in the market for a home loan, see how your payments might be affected.
Mortgage application activity rises on uptick in refinance volume National Mortgage News
An increase in refinance activity in the period after Columbus Day drove mortgage applications 4.9% higher from one week earlier, according to the Mortgage ...
Thinking of Refinancing Your Mortgage? Check These 4 Financial Areas First Forbes
Refinancing your mortgage can be a great way to save on your monthly payment or to change up the terms of your loan. However, while it's a financial move that ...
The troubling reason grandparents should think twice about spoiling their grandkids this holiday season - MarketWatch
The troubling reason grandparents should think twice about spoiling their grandkids this holiday season MarketWatch
Grandma and grandpa may love to spoil the grandkids every Christmas, but they might want to hold off on spending too much on presents this holiday season.
Reverse Mortgages Can Create An Elder Care Lifeline 27east.com
Aside from his real estate practice at Douglas Elliman, Michael Daly holds a certification from the Seniors Real Estate Specialist Council, a branch of the ...
Refinancing activity in the US just plunged to the lowest level in over a decade Business Insider
Refinancing activity plunged to the lowest level since 2000 as interest rates rise.
When Is a Cash-Out Refinance Loan a Good Idea? U.S News & World Report Money
In a cash-out refinance mortgage, you take a loan against your home in excess of what you owe, leaving you with cash available to spend. Adding to the debt ...
Refinance mortgage rate moves up for Friday Bankrate.com
Refinance rates were mixed, but one key rate moved higher. If you're in the market for a mortgage, see what that means for you.
Refinance mortgage rate advances for Thursday Bankrate.com
Refinance rates were mixed, but one key rate moved higher. See what that means for your refinance chances.
Refinance mortgage rate trends higher for Tuesday Bankrate.com
Refinance rates were mixed, but one key rate advanced. If you're shopping for a home loan, see what that means for you.
Rates Are Rising, But Is It Time To Refinance? Five Scenarios To Consider Forbes
Mortgage rates are rising. Does that mean it's time to refinance? About 85% of you just shuddered at the thought of refinancing as rates climb. Hear me out.
Refinance rates rise for Tuesday Bankrate.com
Multiple key refinance rates moved higher today. If you're shopping for a home loan, see what that means for you.
Best Mortgage Lenders Bankrate.com
The best mortgage lender isn't the same for everyone.That's why we compiled a list of best mortgage lenders for first time home buys to those looking for their ...
Rocket Mortgage Review Bankrate.com
Rocket Mortgage from Quicken Loans lets you apply for a mortgage in minutes using nothing more than a smartphone app.
Torontonians go for a run in speedos — for charity Edmonton Sun
Around 50 runners make their way around Yorkville during the 11th annual Toronto Speedo Run on Saturday December 15, 2018. Clad in nothing but running ...
Refinance mortgage rate slides for Thursday Bankrate.com
Refinance rates were mixed, but one key rate slid lower. If you haven't locked a refinance yet, see what that means for you.
Refinance mortgage rate slides for Monday Bankrate.com
Refinance rates were mixed, but one key rate sunk lower. See what that means for your chances of scoring a killer refi rate.
Refinance rates fall for Saturday Bankrate.com
Multiple key refinance rates trended down today. If you're in the market for a home loan, see what that means for you.
When and How to Refinance a Personal Loan Bankrate.com
If you're thinking about refinancing a personal loan, check these factors first.
Credible Brings the Power of Its Marketplace to Mortgages Credible News
We set the standard for transparency in the student loan industry. Now we're out to do the same for mortgages.
Refinance rates slide for Wednesday Bankrate.com
Several key refinance rates declined today. If you're shopping for a mortgage, see how your payments might be affected.
Refinance mortgage rate ticks higher for Wednesday Bankrate.com
Refinance rates were mixed, but one key rate floated higher. See what that means for your chances of getting a better mortgage rate.
Refinance mortgage rate eases for Saturday Bankrate.com
Refinance rates were mixed, but one key rate slid lower. If you're shopping for a refi, see how your payments might be affected.
Refinance mortgage rate drops for Friday Bankrate.com
Refinance rates were mixed, but one key rate were down. If you haven't locked a refi yet, see what that means for you.
Mortgage refinance candidates cut by half in the past four months National Mortgage News
The number of mortgage borrowers for whom it made sense to refinance declined by nearly half since the end of last year and is at its lowest since November ...
Government set to launch affordable housing project next week Capital FM Kenya
NAIROBI, Kenya, Dec 12 - President Uhuru Kenyatta says he will launch the first affordable housing project in a week's time. Speaking during the 55th - Kenya ...
Refinance rates decline for Thursday Bankrate.com
Multiple benchmark refinance rates receded today. See what that means for your chances of getting a better mortgage rate.
What It Takes to Refinance a Jumbo Loan NerdWallet
Refinancing a jumbo loan, a mortgage over $484350, in most cases, and up to $726525 and even higher in some high-cost areas, can result in big savings and ...
Potential refi market falls 40% as mortgage rates keep rising National Mortgage News
The spike in 30-year fixed interest rates, at a time of continuously rising home prices, has pushed home affordability to its lowest level since 2009, and cut ...
Refinance rates move higher for Tuesday Bankrate.com
Several key refinance rates rose today. See what that means for you if you're in the market for a home loan.
Mortgage rates decrease for Wednesday Bankrate.com
Multiple benchmark mortgage rates ticked downward today. The average rates on 30-year fixed and 15-year fixed mortgages both receded. The average rate on ...
Mortgage refinance share jumps 5% despite rising interest rates HousingWire
The refinance share of mortgage activity increased a full 5% from December to January, rising to 45% of all closed loans, according to the latest Origination ...