Advantage - 3 Years Fixed - Investment

Pre-approval can be an important step in buying an investment property. Sellers will want to be assured that a bank or lender has given you a loan offer, or you have been pre-approved, before even considering your offer. At Mortgage House, we can help you get to that stage so you are well prepared before negotiations begin. We will start by doing a credit check, so it can be important to be aware of any credit applications you have made, if any have been denied, how much credit you owe now against what your credit limit is, and whether or not you have defaulted on any loans. We will also need you to document the income you expect to receive from your investment property, as well as things like operating expenses, and how much you have set aside in your budget for taxes and maintenance. While pre-approval can be an important step, it is not binding and can’t be used to make an offer on a property. It is important to continue down the process to get full or unconditional approval before proceeding with any property purchase.

Our 3 Years Fixed Investment Mortgage is a principal-and-interest loan, not an interest-only mortgage. This means that both the principal and the interest will be repaid over the term of the loan. You can also make extra repayments to our 3 Years Fixed Investment Mortgage without being penalised. Another feature of this loan is that it has a 100% offset facility. This means you can link a non-interest earning account to the loan, and its entire balance is offset against the loan itself. This can reduce the total interest that is payable over the life of the loan, and can save you money going forward. Our 3 Years Fixed Investment Mortgage also features a redraw facility which allows you to access any additional repayments or lump sums you have made off your loan. This kind of flexibility can be important for investment properties, and can help you deal with any unforeseen and expensive maintenance costs. Importantly, you will not be penalised for making additional repayments.

If you prefer stability and predictability when it comes to repayments, then fixed rate mortgages may be the right choice. And that can be extra important for those looking for investment mortgages and wanting that little extra bit of budget security. While a steady rental income is attractive to those investing in property, having a predictable and steady interest rate instead of a variable interest rate that can change up or down, can help make a big difference. Budgeting can be easier and the risk of defaulting on your loan as a result of variable interest rate increases can be eliminated.

Finding suitable mortgages can be challenging, and trying to compare loans can be tough. Different mortgages may have different fees or different fee structures that don’t show up in the advertised interest rate. They may also have penalties for extra repayments or early settlements. All of these different variables can make choosing hard. That is where comparison rates can come in. Banks and lenders are required by law to display comparison rates next to any advertised rate, as a way of demonstrating the comparative cost to you over the life of the loan. Comparison rates are made up of a range of variables, including loan amounts and terms, payment frequency, fees, charges and interest rates. Their aim is to help to simplify comparisons between packages. While they can’t take every possible situation into account, they can be a good high-level indicator and help you in your decision making. At Mortgage House, we are no strangers to finding suitable mortgages for property investors. To find out more about comparison rates, or anything about our 3 Years Fixed Investment Mortgage, click here.