index>Fixed Rate Buy To Let Mortgages Fixed Rate
Buy To Let Mortgages
The fixed rate mortgage is popular with first time buyers and investors because it offers stability in monthly repayments.
Knowing how much your mortgage is going to cost each month, regardless of interest rate fluctuations can be important in the early days of your investing career.
The main advantage of fixing your interest rate is certainty of knowing that your repayments will be fixed for a given period of time.
It's possible to fix your mortgage payment from 12 months to 5 years and depending upon economic conditions you may also be able to secure funding at rates which are below variable rate pricing.
The downsides to a fixed rate mortgage are the potential loss of flexibility and increased redemption penalties and or redemption terms.
Many lenders charge fees to release lenders from their fixed rate mortgage earlier than initially contracted for, so they may not be a suitable mortgage for all investors.
However, as most buy to let investors are in for the long term and want to see capital growth in their investment, getting a fixed rate mortgage can often be a good idea, especially for those people who like to keept their outgoings and expenses stable.
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