At the end of a BtL mortgage deal, does one have special retention offers?

49IM
49IM Posts: 42 Forumite
in Mortgages & endowments
...or are we back to square one and choosing from the same options we did originally?

If I will have to slap a new £2000 arrangement fee onto my mortgage every 24 months then that does rather go in the wrong direction, and makes high-rate (3%ish) 5yr fixes very close to break-even with a much cheaper 2yr)

So I'm wondering if, in fact, lenders tend to offer "continuing" customers sweeter deals without significant new fees and such?

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Product fees are simply a means of attracting a particular market segment of customer, i.e. larger mortgage balance. No sentiment when it comes to lending. Choose from what on's offer or move elsewhere.
  • Lilla_D
    Lilla_D Posts: 359 Forumite
    First Anniversary
    Thrugelmir wrote: »
    Choose from what on's offer or move elsewhere.

    Thrugelmir is right, whatever your current lender offers, that's what you can choose from if you want to stay with them or you can go to another lender and start afresh.

    Some lenders offer special deals to their existing customers, others don't. It just depends on the lender and what's available at the time.

    You are also right that in many cases choosing a 5yr fix works out pretty similar overall compared to remortgaging every 2yrs with a £2k fee. If you plan to keep the property, you might as well take a 5yr deal, just factor in the tax changes that are phasing in and how they affect your cash flow.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • amnblog
    amnblog Posts: 12,442 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Don't forget that the fees are tax deductable so less painful that they first appear.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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