The most common way to finance an investment property is with a buy to let mortgage hence the importance of Buy To Let Mortgage Rates.

People generally search for the best interest rate and often search the best buys tables, mortgage comparison websites and newspapers looking for the lowest interest rate mortgage product.

The key thing to remember when searching for buy to let mortgage rates is that it actually isnt all about rate! Confused? Well let me explain.

Buy to let mortgages rates are just one component you should be aware of when choosing the most suitable rate. Other costs include valuation fees, the dreaded arrangement fees and any early redemption charges.

For example buy to let mortgage rates that have a long term low fixed interest rate with a low arrangement fee may be suitable for many but if that same mortgage product has a large early redemption penalty and you want to sell in the short term time it may be completely inappropriate.

So thats what I mean by its not all about rate. Yes, its important, but it is just one of the factors.

Have a look round this site and explore all the tips and tricks within.

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What does this mean to the property investor/landlord? Well, rates might have reduced but they will still be higher than your current mortgage rate if you are on a very low tracker, so it certainly doesn’t mean you should be swapping your buy to let mortgage. Of course this is a decision you should take after seeking advice from an experienced buy to let mortgage broker.

We are still in an uncertain period that’s for sure. Bank of England base rate is at a historical low and no one knows when it’s going to increase.

There have been a few longer term fixed buy to let mortgages hitting the market in recent weeks, but they don’t seem to be tempting the majority of investors at the moment. I assume the gloomy news is making them think buy to let mortgage rates aren’t going anywhere!

So for new buy to let mortgages the fact that buy to let mortgage rates have reduced is definitely a good thing, for existing borrowers who may be looking to switch for a better rate then hold tight and speak to a buy to let mortgage expert first.

The Bank of England today warned that the worsening Eurozone crisis is going to have a real impact on current mortgage rates, as it is getting more expensive for banks to raise money and therefore they will pass this cost onto borrowers. In spite of the Bank of England base rate staying at 0.5%.
The winners in this are going to be those of you that have buy to let mortgages with low tracker rates that were taken out a few years ago. If you are sitting with a buy to let mortgage rate of Base Rate plus 0.5% then it doesn’t look like rates are going up anytime soon, and you can benefit from long term, record low mortgage interest rates.

For those of you that are on the lenders standard variable rates (SVR’s) then it’s a different story. If your buy to let mortgage rate is tied to a lenders SVR, then the lender is able to increase this rate even if base rate hasn’t increased. In fact there have been a number of examples of this over the last few months. As soon as borrowing gets more expensive the lenders are simply passing on this extra cost to you. That is how you get in the situation where base rate is static but your mortgage rate is increasing.

Rather than just accept your payments are going to rise you always have the option of considering remortgaging away from you current lender to another lender with a lower buy to let mortgage rate. However, to get perspective on whether it is worth it to you then consider all costs that are incurred with switching the mortgage versus the savings it gives you once you’ve swapped.