First Time Buyers

A Fixed Rate Mortgage for buy-to-let properties ensures that your monthly payments remain consistent throughout the term of your mortgage. You lock in an interest rate for a specific period, typically ranging from 2 to 10 years. This means that, regardless of market changes or shifts in the Bank of England's rates, your monthly mortgage payments will not change.

If you value stability and predictability, this type of mortgage is ideal for you. The only thing to be mindful of is that once the fixed-rate period expires, the mortgage will usually switch to the lender’s Standard Variable Rate (SVR), which could be higher. However, you can easily remortgage to a new fixed rate once your initial term ends.

Standard Variable Rate (SVR) Mortgages have interest rates that vary based on the Bank of England’s base rate and the lender’s own costs.

As a result, your monthly payments may increase or decrease. Although this provides less predictability than a fixed-rate mortgage, it also means you could pay less if interest rates go down. However, there’s also the risk that rates could rise, making your mortgage payments more expensive.

A Tracker Mortgage is another type of variable buy-to-let mortgage. The interest rate typically follows the base rate, with an additional percentage added on. For instance, if the base rate is 1% and the tracker rate is base rate plus 1.5%, your rate would be 2.5%.

Tracker mortgages can be beneficial when interest rates are low or falling. However, they can also be risky if rates increase, as your payments would rise accordingly.

Discounted variable rate mortgages are linked to the lender’s Standard Variable Rate (SVR). They offer a reduced interest rate for a set period, usually between 2 to 5 years.

With some of the lowest interest rates and smallest monthly payments, these mortgages can be especially appealing to first-time buyers. However, it's important to keep in mind that both the interest rates and monthly repayments can change at any time.

If you're self-employed, thinking about using a family member as a guarantor, or dealing with other unique situations, a specialist mortgage might be the right option for you.

These mortgages are specifically tailored to help first-time buyers navigate common challenges to homeownership. Contact one of our advisors for more details.