Flexible Buy To Let Mortgages

 

As their name implies, a flexible Buy to Let mortgage is flexible!

 

This means that many lenders will allow you to make overpayments or underpayments to your mortgage, or in some cases, even take mortgage payment holidays.

 

This might be advantageous for a Buy to Let investor, in that additional payments can be made when the property is fully rented, but if you suffer a downturn in rentals, then you can either reduce the payments for a short while, or even take a break from paying the mortgage.

 

Always look carefully at the terms of the flexible Buy to Let mortgage because sometimes, they can contain redemption penalties.

 

Interest on a flexible Buy to Let mortgage is usually calculated on a daily basis. If you are planning to make overpayments, this is extremely advantageous and allow you to repay the mortgage early, if it's been taken out on a repayment basis, whereby each payment contributes to both a capital and interest contribution.

 

Where the level of flexibility extends to re-drawing overpayments you may utilise the facility as a "sinking fund", say for refurbishment or so that payments can be missed in the event of rental income not being generated for a period.