|
Lender |
Type of product |
Initial Rate |
Variable Rate |
Rental Cover |
Maximum loan to value |
Fees & Incentives |
Early Redemption Charge |
| Mortgage Express | Lowest available 1 year fixed rate but with 2 year early repayment penalty overhang |
3.44% Fixed until 30/9/06 |
6.5% |
130% @ 6.5% |
85% |
£449 arrangement fee (can be added) + £295 valuation fee | 5% of loan until 30/9/2008 |
| BM Solutions | Lowest available 1 year tracker rate but with 2 year early repayment penalty overhang |
3.99%Tracker 1 Year |
6.7% |
125% @ 5.95% |
85% |
£699 arrangement fee (can be added) + £315 valuation fee | 5% of loan within 2 years, 4% of loan in year 3. |
| BM Solutions | Lowest available 2 year fixed rate but with 1 year early repayment penalty overhang. Also has free valuation and legal fees (remortgage only) |
4.49% Fixed until 1/9/07 |
6.7% |
125% @ 5.95% |
85% |
£795 arrangement fee (can be added) Free valuation and legal fees | 5% of loan until 1/9/08 |
| The Mortgage Works | Lowest available 3 year fixed rate at 85% LTV with no overhanging early repayment penalties |
4.69%fixed until 31/8/08 |
6.74% |
125% @ 4.69% |
85% |
£1275 arrangement fee (can be added) + £290 valuation fee | 5% of loan until 31/8/08 |
| Mortgage Express | Lowest available 5 year fixed rate at 85% LTV with no overhanging early repayment penalties |
4.69% fixed until 30/9/10 |
6.5% |
125% @ 4.69% |
85% |
£1275 arrangement fee (can be added) + £250 valuation fee | 5% of loan until 30/9/10 |
| Platform | Lowest available lifetime tracker rate at 0.75% above bank of england base rate (3 year early repayment penalty) |
5.5% |
5.5% |
125% @ 5.5% |
85% |
£599 arrangement fee + £695 higher lending fee (both can be added) +£235 valuation fee | 5% of loan within 1st there years |
| GMAC | 3 year fixed rate with only 11% deposit |
5.65% Fixed until 1/9/08 |
6.74% |
125% @ 5.65% |
89% |
£795 arrangement fee (can be added) + £245 valuation fee | 3% of loan until 1/9/08 |
The above table shows a selection of the market leading products that we have access to (as at 29/07/2005) covering a variety of fixed, discounted and tracker rates. For comparison purposes, we have assumed a property value of £100,000 and where the arrangeemnt fee is percentage based, assumed a loan amount of £85,000.
Although the above tables gives a selection of the best rates currently available, we recommend using a true cost analysis as this is the sum total (over the chosen period of time) of monthly payments, arrangement fees and valuation costs and this enables us to compare different benefits offered by lender's schemes fairly against each other.
Buy to let should not be seen as a short term investment and we generally suggest that we make recommendations based around at least a 5 year cost comparison as it is extremely costly to remortgage a buy to let every couple of years (as is possible in the residential mortgage market). This is because ‘Buy to Let’ is still classed as commercial lending by the majority of lenders and they do not tend to offer any remortgage incentives (Occasionally there are deals available but only when lenders want to attract business into them). We estimate that it may cost upwards of £1,500 every time that you remortgage a property and this would obviously eat into your yield. At the end of the day this is the driving factor for your investment and you wouldn't be in the game if you did not want to maximise your potential profit.
Whilst great care has been taken in compiling these tables, no liability can be accepted by Mosaic Mortgages as all rates and conditions should be checked before finalising any arrangements. Furthermore, these tables do not constitute an offer of advance nor does it in any way bind any particular lender to make an advance. The tables are for illustrative purposes only .
Click here if you would like further information on any of the above schemes or would like one of our specialists to contact you to discuss your individual circumstances.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT. WRITTEN QUOTATIONS AVAILABLE ON REQUEST.
Previous Page
Buy to Let Mortgages - Rental Yield
Mosaic Mortgages is a trading name of Mosaic Mortgage Management Limited. Mosaic Mortgage Management is regulated and authorised by the Financial Services Authority under registration number 300398. Head Office: 2nd Floor, Harrogate House, 33-35 Parliament Street, Harrogate, HG1 2RE. Telephone 0845 3456744.