Hi I have just read the article on top 10 tips for first time investors. Item no 10 states to get a fixed rate mortgage for 2-3 years. My question with this, is if I do how will I then gear my finance to withdraw capital from the property, as there will be inevitable redemption penalties on fixed rate mortgages ? Thanks in advance for any comments you may have Kelly

The redemption penalties are usually only for the period of the fixed rate (i.e. 2-3 years) So in 2-3 years you should look to remortgage (possibly with another lender who has a better rate at that time), and can remortgage at the value of the property then. Chris

Kelly, do you plan to sell to release capital? If so then 2-3 years is not long to hold a mortgage. If you wish raise capital by mortgaging then most Lenders will let you draw more at the same Fixed Rate during that period - as long as the property value and rental income supports the additional borrowing. I have done this several times. Then some Lenders will let you remortgage a few months before the Fixed Rate period ends as long as you have one of their products and won't charge a penalty, this is a way of keeping your business - never be afraid to ask Lenders for what they can do to keep your business - in the UK that is! Mortgage Express is one such Lender and I believe that Portman B/Soc do the same. Bradford & Bingley have done this for me before aswell, although it was under duress!