Investment Property Mortgage Rates

All investment property mortgage rates are linked to the base rate as set by the Bank of England. This linkage depends on the type of mortgage that you have with your lender. Some mortgages are set a certain amount above the base rate and will be variable. So if the cost of money increases, that means the base rate, then your mortgage will increase by that amount. It's not that difficult.

Mortgage companies set a Standard Variable Rate upon which all their other mortgage deals are based. This rate tends to run at around 2% over the Bank of England base rate as set by the Monetary Policy Committee.

There are many different types of mortgages in the UK servicing different types of applicant; if you're not an investor looking for a buy to let mortgage, just Google 'UK Mortgages' and there's gazillions of links from which to choose, or click

here. The rate that may be offered depends on the person or type of person that is applying for the mortgage. So good risk applicants with good credit histories, and well paid jobs will be welcomed whereas sub prime applicants will be charged higher rates of interest. Generally, to get a good rate, you'd have to have your own home, have a good job and credit history - essentially be a professional.

Most investment mortgages will tend to be interest only as interest is an allowable expense as far as the tax man is concerned, and by having interest only means that you will be able to afford more of a mortgage and therefore, a higher priced property.

Please click to view the latest buy to let mortgage rates.

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