10 Year Fixed Buy to Let Mortgage
A 10 year fixed buy to let mortgage is one of the longest fixed rate periods that are offered by lenders. In normal circumstances they only offer these fixed terms for 2-3 years. This is because the property market fluctuates constantly and it is a gamble to get a fixed rate for a long period of time.
People get a buy to let mortgage for the sole purpose of buying a property with the intention of renting it out. It is for people investing in the property market in order to try and make money. That is why a normal mortgage won’t be suitable with these intentions in mind as you must declare why you are buying a property and that you won’t be living in it.
The buy to let lenders will look at a whole host of factors before deciding whether to approve a mortgage. One of the main reasons will be the rental potential of the property and the area it is in. If it is in a desirable area and other properties are being rented nearby, you will stand more chance of getting a mortgage for it. As long as the rental income is more than the mortgage, then this will go in your favour.
They will also look at whether you have any other properties as some lenders will cap the number of properties and not give out a mortgage if you reach that cap. This can vary between lenders as some allow up to 10 or more but others will cap it at 3 properties. So this is something to bear in mind and find out before looking for another property.
Whether you decide on a 10 year fixed buy to let mortgage or go for a variable rate mortgage, just be sure you can always make the payments and keep your tenants happy. That will lead to a much better deal for both parties.
