Buy to Let Mortgages without early repayment charge
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Why Choose Us
Buy to let mortgages are designed for those who wish to purchase a property, with the intention of letting it out to a tenant, usually on short hold tenancy agreements of either 6 or 12 months long, which can either be renewed or new tenants found over a number of years. Most buy to let properties are bought as long term investments rented out for a number of years, but in a smaller number of cases buy to let property may be a shorter term investment. In the case where the mortgage is likely to be paid off within a 5 year period it may be worth considering buy to let mortgages without early repayment charge (redemption penalties).
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Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
05.11.2024
Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
05.11.2024
Buy to let early repayment charges (redemption penalties)
Early repayment charges (redemption penalties) are usually the amount that a lender charges when the mortgage is repaid early, before the term which was initially arranged. It usually is highest the earlier that the mortgage is paid off. They are usually calculated by:
- The percentage of the original loan value
- The percentage of the balance still owing on the mortgage
- The percentage of the amount already repaid
- The number of months’ interest
A more flexible buy to let mortgage
Buy to Let Mortgages can be costly if you need to unexpectedly end them early, perhaps if you need to sell the property or you see a great investment elsewhere. A buy to let mortgage with no early repayment charges (redemption penalties) gives buyers an extra layer of reassurance should they not be 100% certain the property will be a long term investment. Being able to sell the property at any time without penalty could put the buyer at a great advantage financially. As this type of mortgage tips the balance in favour of the investor, not the lender. Whether you are looking for your first time buy to let mortgage, or you are a property portfolio owner, using a specialist buy to let mortgage broker highly experienced in the BTL sector we will be able to quickly and precisely find you the best value mortgage to match your requirements.
Other benefits with BTL mortgages without early repayment charges
Along with the potential saving of up to 4 percent of the loan value, as with a typical 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 tenant in place, potential investors are likely to be encouraged by the prospect of taking on a property which has an established tenant – which saves the cost and hassle of finding a new tenant and vetting them, but it also means that they immediately receive a return on their investment.
As a product, buy to let mortgages with no redemption fee is relatively new on the market, so it is essential that you seek professional advice before taking out this kind of mortgage. Here at Ascot Mortgages we believe in giving you impartial advice, whatever your situation. If you are a buy to let investor we can use our knowledge and excellent reputation in the market to find you a bespoke mortgage offer, for the best price and quickly. We would encourage you to call and speak to one of our trained, friendly advisors who can discuss your requirements with you. Our guide, on buy to let mortgages with no early repayment charges (redemption penalties), is a good place to start.
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Alison Gibson
Ascot Mortgage Expert
Remortgage
Remortgaging is applied when you keep
living in your present property while applying for another mortgage deal with a new lender. Before finding out how to remortgage and get the best offers from experts like Ascot Mortgages, you have to check meeting what parameters of the deal that can help you succeed the most. The range of background factors varies a lot — from the recently changed loan-to-value ratio or your existing agreement coming to an end.
Whether you are trying to get a more beneficial deal or searching for funding to improve your home conditions, remortgaging is one of the most advantageous scenarios to consider.
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FAQ
The loan to value (LTV) rate determines how much you can borrow. A lower LTV typically results in better interest rates and more choice of lenders for remortgaging, as it represents lower risk to lenders.
Yes, you can choose to remortgage with a different lender. However, this should be based on factors such as interest rates, fees, and the terms and conditions of the potential new mortgage. Contact us today and we can help you to find the best option to suit your needs.
Most lenders will require a valuation of your property when you remortgage to ascertain its current market value. Some lenders may use an automated valuation model instead of a physical appraisal. Need help navigating this? Reach us today to discuss your mortgage needs.
Yes, when remortgaging a solicitor is required for both the mortgage lender and the applicant. Some mortgage lenders offer mortgage products that have a free legal facility. They handle the legal paperwork and advise on potential issues.
The amount you can borrow with a remortgage depends on multiple factors including your income, outgoings, credit score, the value of your property, and the lender’s criteria. Easy contact us to discuss your remortgage borrowing capacity.
The remortgaging process typically takes between 4 to 8 weeks, but can be quicker or slower depending on your circumstances and the lender’s processes. For help in understanding what you can expect, contact us today!
To improve your chances of being accepted for a remortgage, maintain a good credit history, ensure your income is stable, and reduce your overall debt. It can also help to have a clear purpose for remortgaging. Need advice? Reach us today.
It is possible to remortgage with bad credit, but options may be limited and interest rates may be higher. Some specialist lenders provide services for people with poor credit histories.
Applying for a remortgage will likely require a credit check, which can leave a footprint on your credit file. However, the impact on your credit score is usually minimal and temporary.
If your remortgage application is rejected, seek to understand why. It could be related to your income, property value, or credit score. You may need to consider alternative lenders or improve your financial situation. Contact us today for a free consultation and guidance on your options.
Yes, self-employed individuals can remortgage. However, you’ll need to provide more evidence of your income, usually in the form of HMRC documents for the last two or three years. If you’re self-employed and considering remortgaging, feel free to reach out to us whenever you’re ready to discuss this further.
Seeking advice on remortgaging can be beneficial to understand the costs, benefits, and potential risks. Professional mortgage advisors can guide you to make the best decision based on your circumstances. Need professional advice? Easy reach us and we always here to help!
Yes, there are fees involved in remortgaging. These can include exit fees from your current lender, arrangement fees for your new mortgage, valuation fees, legal fees, and broker fees. It’s important to factor these in when considering a remortgage.
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Legal
Ascot Mortgages authorised and regulated by the Financial Conduct Authority and can be found on the FCA register (www.fca.org.uk) under reference 776062. The FCA do not regulate some forms of mortgages. The guidance and advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate it will be £599 per mortgage account. Ascot Mortgages Ltd give you the option to pay a non-refundable fee of £1299 payable with the application. If this option is taken, Ascot Mortgages Ltd will refund any procuration fee received by the lender.
Ascot Mortgages Limited is registered in England and Wales and have their registered office at 8 Webster Court, Westbrook, Warrington, WA5 8WD. The company’s registration number is 06764971.
We are a credit broker, not a lender. We work with the whole of the lending market. We may receive commissions that will vary depending on the lender, product, or other permissible factors. The nature any commissions model will be confirmed to you before you proceed.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT
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