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Buying a house or remortgaging the existing one is an important decision and it should not be taken without research and professional assistance. For instance, help to buy mortgages have many benefits and many people qualify, especially since they need only a 5% deposit.
On the other hand, if you already have a property and you let it, perhaps you might consider buy to let remortgages. These are recommended when you want to make some more money and obtain better interest rates. However, the property should be at a higher value compared to when you initially bought it. It is always recommended to count on mortgage brokers for advice and to help you navigate through all options and deal with lenders to obtain the best offer.
How to Access Buy to Let Remortgages
At the right time, buy to let remortgages have many advantages. You can save money on repayments and you free equity. With the money obtained, you can make other investments, pay other debts and loans, renovate the house, and anything that comes to mind. But how can you make sure you obtain the best deal? First, it is essential to understand what this type of mortgage is. The idea is to switch to a new mortgage on the property you own and rent out. You can get a new deal with your existing lender or move to another one.
There are many reasons why people do this. The main reason is to save money. When you have a property and a mortgage, the main purpose is to keep payments at a minimum. If you find a better offer and lender, you can pay less on the mortgage payments. This also means you obtain a lower interest rate and you will save even more money. Over time, the equity in the property can be increased.
Repayment charges exist if you are in the early stages of the buy to let mortgage. Depending on the lender, you can still save money. Going through the figures with a specialized broker is always a good idea for buy to let remortgages. It is the best way to know if you are in the right stage and if you can remortgage the property. However, you should always make sure to find someone specialized in this type of remortgage, as not all brokers provide diverse services.
Help to Buy Mortgages Scheme – Should You Access It
If you plan to buy a new house and want to access the help to buy mortgages scheme, then you should know as much as possible about the program and how you can qualify for it. Probably you have many questions, especially since buying a house is a major investment and one that you will pay for years to come. You need to know everything about repayments, interest rates, deposits, extra fees, duration, and such. Only afterward can you take an inspired decision and enjoy the property you live in.
The scheme was designed to help people become homeowners and accomplish their dream of having a house. First-time buyers have benefitted greatly from the opportunity because the legislation has made it easier to obtain a mortgage. The housing market has developed greatly and the economy as well. Not to mention that people are more satisfied since they have access to mortgages they could only dream about.
This is perhaps one of the greatest benefits and attractions for first-time buyers. With only a 5% deposit people could save up quicker and purchase a house. In many situations, people don’t access mortgages because they don’t have the deposit and it takes years for them to save up the money. However, with help to buy mortgages they can easily find a lender for the rest of the amount and search for the best property.
The 5% deposit is 5% of the total value of the house. You can easily calculate the amount and know exactly depending on the type of house you want, in what area, number of rooms, outdoor space, and such. Properties are valued differently based on their location, surface, condition if they require renovation or not if they have all furnishes and such. You can adapt the amount based on the house you plan to move in.
How does one qualify for help to buy mortgages? Once you have the 5% deposit, you are already closer to buying the house. Another important factor is to purchase the property to live there, not to let out. The scheme is developed for people looking forward to starting a family or moving in with their loved ones, not for those who want to make an investment and make an extra income.
Buy to let remortgages are recommended in this case. Of course, people who have this intention need to fulfill other criteria. Back to help to buy scheme, the interest rate is free for the next 5 years. This is because after buying a house, people need to make other investments, furnish and renovate it, pay higher bills, and cope with the mortgage. So, lowering costs is an excellent opportunity to achieve that.
Buy to Let Remortgages When the Deal Is Over
When you take a mortgage, the rate is fixed for a determined period. If you fail to switch deals when the term is over, your lender will move you to the standard variable rate. This is known to be higher, so everyone wants to avoid this from happening. Therefore, make sure you know the due-to-end mortgage deal so you can avoid the higher costs. Afterward, you can begin the remortgaging process.
The LTV, which is the Loan to Value, needs to be known. This is calculated based on the property’s value and the amount of money you need to borrow. It will determine the range of mortgages available for you and the rates.
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Published on September 22, 2022
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