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  • FIRST POST
    • vwcampergirl
    • By vwcampergirl 14th Nov 17, 11:08 AM
    • 4Posts
    • 0Thanks
    vwcampergirl
    Moving a Buy to let mortgage how?
    • #1
    • 14th Nov 17, 11:08 AM
    Moving a Buy to let mortgage how? 14th Nov 17 at 11:08 AM
    Hi. This is my first post, so hello all. Only just discovered this site, as saw Martin on the TV the other day. I thought Iíd give this site a go, as looking for some advice!
    I am on a Buy to let mortgage. Fell on some hard times a while ago, but instead of selling house decided to rent it & get through then rough patch. Found a great tenant and things going all ok.
    I informed my lender prior and lender put me onto their buy to let rate. However, in May my buy to let deal is up for renewal. (I have renewed with them once before, on BTL). Iíve been with lender for a number of years. I do think paying a slightly high rate, as looking around some other BTL rates % are cheaper. Though, this is probably a mix of lower % and also based on the balance left. As with current lender itís based on original amount I was given. I also have to pay a four figured fee for renewing in May. So seeing if I could move the product elsewhere?
    How does it work moving a BTL mortgage. I have only moved then residential mortgage. Is it a similar process or do you have to put down a deposit? I have low LTV (35%) & current rent is above 120% above the current mortgage payment.
    I would like to get the monthly payments down further. I donít mind resetting back to 25 years, as doubtful, Iíll keep the house more than a few years. Though, any 25 years term would take me marginally past 65. How are lenders on that now? I would class myself as not a bad risk, as lot of collateral in the house & credit is good. I have never shopped around for buy to let mortgage. I am a bit in the dark. Would anyone advise going through a mortgage adviser? Thanks.
Page 1
    • YHM
    • By YHM 14th Nov 17, 2:48 PM
    • 299 Posts
    • 97 Thanks
    YHM
    • #2
    • 14th Nov 17, 2:48 PM
    • #2
    • 14th Nov 17, 2:48 PM
    Sounds like a straight forward BTL remortgage.

    Plenty of equity, so no issues there, only concern for me would be the rental coverage doesn't seem too high in terms of mortgage payment. Is this because your mortgage is on repayment or are you just a generous landlady?
    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
    • vwcampergirl
    • By vwcampergirl 14th Nov 17, 4:37 PM
    • 4 Posts
    • 0 Thanks
    vwcampergirl
    • #3
    • 14th Nov 17, 4:37 PM
    • #3
    • 14th Nov 17, 4:37 PM
    Sounds like a straight forward BTL remortgage.

    Plenty of equity, so no issues there, only concern for me would be the rental coverage doesn't seem too high in terms of mortgage payment. Is this because your mortgage is on repayment or are you just a generous landlady?
    Originally posted by YHM
    Ok thanks.
    Probably both. I am on a repayment mortgage & calculated I am on 145% rental payment, compared to monthly mortgage. The LTV is 29% I worked out as well
    Naturally this would increase if I can get the monthy payment down.
    I do plan to raise the rent after Christmas and tennant knows this is coming.
    My main objective is to free up more income per month, (put a bigger gap between, rent & mortgage payment), as at the moment I am not working due to looking after a sick parent.
    I don't mind extending a term longer etc as very doubtfull I'll be owning property past 2020/1.
    Would a lender be favourable on interest only on a BTL or am I out of touch on that score?
    On some mortgage calcuators a much lower rate and if I took it back to 25 years. I would be saving over £300 a month and that sounds very favourable to me!
    Last edited by vwcampergirl; 14-11-2017 at 4:48 PM.
    • YHM
    • By YHM 14th Nov 17, 7:13 PM
    • 299 Posts
    • 97 Thanks
    YHM
    • #4
    • 14th Nov 17, 7:13 PM
    • #4
    • 14th Nov 17, 7:13 PM
    Depends on your strategy really. With repayment you are building up equity in the property, whereas Interest Only will give you a greater monthly return on your property investment.

    Id speak to a broker about your plans and use them to remortgage onto a formal BTL. They will look for which options are best for you
    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
    • FungalCow
    • By FungalCow 14th Nov 17, 7:24 PM
    • 26 Posts
    • 8 Thanks
    FungalCow
    • #5
    • 14th Nov 17, 7:24 PM
    • #5
    • 14th Nov 17, 7:24 PM
    Some lenders won't be happy you lived in it in the past. Odd rule but an easy one to trip up on. What you want to do sounds really straightforward, but only once the right path has been identified
    I am a Mortgage Adviser

    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.
    • vwcampergirl
    • By vwcampergirl 14th Nov 17, 10:19 PM
    • 4 Posts
    • 0 Thanks
    vwcampergirl
    • #6
    • 14th Nov 17, 10:19 PM
    • #6
    • 14th Nov 17, 10:19 PM
    Ok many thanks for the replies. It's not for a few months yet. Though, prefer to start talking to people now, to get an idea of what is achievable.
    • vwcampergirl
    • By vwcampergirl 3rd Dec 17, 3:39 PM
    • 4 Posts
    • 0 Thanks
    vwcampergirl
    • #7
    • 3rd Dec 17, 3:39 PM
    • #7
    • 3rd Dec 17, 3:39 PM
    Some lenders won't be happy you lived in it in the past. Odd rule but an easy one to trip up on. What you want to do sounds really straightforward, but only once the right path has been identified
    Originally posted by FungalCow
    Ok thanks.
    Though are lenders ok with interest only nowadays. If you have vast equity in your property?
    Or is that a big no no, nowadays?
    Only going to be holding onto the property for another 2 years max. Prefer to have more incoming monthly (ie lower mortgage monthly repayment). Then worried about paying off more captial, as have a fairly low LTV.
    • amnblog
    • By amnblog 3rd Dec 17, 10:42 PM
    • 10,069 Posts
    • 3,925 Thanks
    amnblog
    • #8
    • 3rd Dec 17, 10:42 PM
    • #8
    • 3rd Dec 17, 10:42 PM
    Interest only is totally acceptable in the Buy to let market.

    Not earning income is a problem, and you may find staying with your current lender is your only useful option.

    One for a Broker.
    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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