At the beginning of 2017, the average buy-to-let 5-year fixed rate mortgage was 3.77%, according to the Buy-to-Let Mortgage Index from Mortgages for Business – which is more than 0.25% more expensive than the average cost of a 5-year fixed rate today.
This means there are many landlords, of whom you may be one, who are currently paying a more expensive rate for their mortgage than they would be able to achieve today, but who are also tied into a 5-year fixed rate, with the prospect of having to pay Early Repayment Charges (ERC) in order to benefit from the current low rate environment.
So, is it worth paying the ERCs?
Unfortunately, there is no simple answer to this question as every situation will be different, depending on the existing rate, the size of the loan, the level of any ERCs and the new rates that are available.
Fortunately, there is an easy way for landlords to find the answer for their own circumstances, with technology platforms like Lendlord that takes the strain of managing a portfolio, search the market for you based on your portfolio details and your own profile and alerts when opportunity is found.
Check out the full article here: Tech tips to get more from your portfolio
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