New mortgage, Remortgage or buy to let – Mortgage advice to suit you

Buy To Let Mortgage Advice

It is impossible to generalise because every buyer will have a different set of circumstances and priorities.

Some will be stretched in the early years and need to borrow the maximum amount to get on the housing ladder. Others will have decent earnings and want more flexibility and the option to repay early.

However, here are a few scenarios to get you thinking about what might suit you best.

First-time buyers often prefer to go for a fixed-rate deal – at least initially – because moving into a home is likely to be a very stressful and financially testing period of a person’s life and they need to know their payments will not rise in the short term during the fixed period.

Borrowers in their thirties may be on higher incomes, although it’s also likely their expenditure will have also risen if children have arrived on the scene. They will also probably like the idea of paying at least some of the capital off each month so they can see their loan “shrinking.”

Those expecting their salaries to rise sharply over the next few years, or who are in line for a bumper inheritance, may opt for interest only, in the knowledge that paying off the original sum won’t be too difficult.

However, the financially stable, who believe interest rates are likely to stay low in the future, may not want to commit themselves to a fixed-rate deal as they could end up paying a lot more. Instead, they may go for a tracker deal, which moves up and down with the base rate set by the Bank of England. In any event, bear in mind that mortgage rates are at historically low levels at present and may not stay that way forever. Always work out if you can afford to keep up repayments if they rose 50 per cent. If you can’t then cut back on the amount you are borrowing.

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