100% Buy to Let Mortgages: say no to a mortgage insurance100% Buy to Let Mortgages: say no to a mortgage insurance100% Buy to Let Mortgages: say no to a mortgage insurance

100% buy to let mortgages have a lot of disadvantages...

100% buy to let mortgages

100% Buy to Let Mortgages: say no to a mortgage insurance

100% buy to let mortgages are slowly fading away in the liens world. Once upon a time, they were very good options for investors looking for a property to let. However, as time went by and interest rates rose, investors realised that 100% buy to let mortgages were not what they seemed to be. The main disadvantage of this liens is that, should there be a fall in the market value of the property, you'll end up paying a lot more than you should. This is called "negative equity".

Borrowers of 100% buy to let mortgages may be asked to pay a mortgage insurance in case the property value decreases. Some companies do not ask for insurance in that situation but they do increase the monthly payments of 100% buy to let mortgages.

If you have your mind set on 100% buy to let mortgages, bear two things in mind. First, that you have to look for a property that will certainly pay off the mortgage by means of the rent. And second, that there are some 100% buy to let mortgages with fixed or capped interests. That way you'll avoid any kind of surprises when the bill comes. For further infomation on interest rates and how to save money, resort to the Offset mortgage calculator.