Buy To Let No Redemption Mortgages
Buy to Let Mortgages without Early Repayment Charges
Buy to let mortgages are made for those who wish to buy a property, with the objective of letting it out to a renter, usually on shorthold tenancy agreements of either 6 or Twelve Months long, which can either be renewed or a brand-new tenants sought over a number of years.
Most buy to let properties are purchased as long term investments rented out for a number of years, but in a smaller number of cases buy to let property might be a shorter term financial investment. In the case where the mortgage is most likely to be paid off within a 5 year duration it could be worth considering a buy to let mortgage with no very early payment charges (redemption charges).
Unlike a lot of buy to let mortgages, those without early repayment charges (redemption penalties) are made to allow the property to be sold on quickly without charge; sold on as a tenanted property; or sell within a shorter period of time as a buy to let property after refurbishment or development work without receiving a financial charge for paying the mortgage off early. Redemption costs on buy to let mortgages do differ, however it is not uncommon for them to be around the 4% mark, so if you think this might impact you then making use of a buy to let mortgage without a redemption penalty (early repayment charge) can be a great way to save some cash.
Buy to let early repayment charges (redemption charges)
Early repayment charges (redemption charges) are normally the amount that a loan provider charges when the mortgage is repaid early, prior to the term which was at first arranged. It typically is greatest the earlier that the mortgage is paid off. They are typically calculated by:
- The portion of the original loan value
- The percentage of the balance still owing on the mortgage
- The portion of the amount already paid back
- The number of months’ interest
A more versatile buy to let mortgage
Buy to Let mortgage can be costly if you unexpectedly end them early, perhaps if you have to sell the property or you see an excellent financial investment in other places. A buy to let mortgage without any early repayment charges (redemption charges) offers buyers an extra layer of reassurance needed if not 100% certain the property will be a long term financial investment. Having the ability to offer the property for sale at any time without penalty can put the buyer in an excellent position economically. Whether you are trying to find your first time buy to let mortgage, or you are a property portfolio owner, using an expert buy to let mortgage broker experienced in the BTL sector who will be able to quickly and efficiently find you the best value mortgage to match your requirements is a huge benefit.
Other advantages with BTL mortgages without early payment charges
Together with the interest saving of around 4 percent of the loan value, just like a common buy to let mortgage, there is the added selling value of a tenanted BTL property. Should the owner be able to sell the property with a lessee in location, interested investors are more likely to be encouraged by the prospect of handling a property which already has an established lessee – saving the cost and hassle of finding a new renter and vetting them, however it also means that they immediately get a return on their financial investment. As a product, buy to let mortgages without any redemption cost is fairly new on the marketplace, so it is vital that you seek expert advice before taking out this type of mortgage. We provide you impartial options, whatever your circumstance. If you are a buy to let investor we can utilize our knowledge and credibility in the market to find you a custom mortgage offer, for the best price. We would urge you to call and talk to one of our trained, friendly advisors who can discuss your requirements with you.
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