Buy To Let Fixed Rate About To End Advice Plz?

s0nic

Hi guys

After taking out my buy to let mortgage almost 2 years ago my fixed rate buy to let mortgage is about to come to an end.

My rate atm is 5.99 should i expect this to rise or are there some good deals out there?

Any pointers from the experts would be great

Thanks :cool:

minimike2

What is the value of the house, the o/s mortgage balance and the rental income?

s0nic

Sorry yes it has a rental income of £525 pm and the value of the house is £108,000 with a balance of around £84,000 est

Thanks for the quick reply

minimike2

You should just about be ok to find a new deal - really you want the rent a bit higher to get the best deals - in the region of £550 pcm. Rate wise you are probably look about 0.5% - 0.7% increase - but beware of big fees.

Has your current provider offered you a new deal to stay with them? That would probably be better given the uncompetitiveness of BTL deals at the moment - many have high fees and not many offer incentives like free valuations and legal work now, so the costs of switching are high.

longwalks1

Sorry for hijacking. minimike who decides on the rental income for mortgage purposes? for eample soic is getting £525 at present and you said £550 would help more with getting a new deal, whodetermines that figure? does sonic declare it? an estate agent provide a rental valuation letter? or does the lender do an area/postcode estimate?

just wondered say sonics place was exceptional inside and someone fell in love with it, offered £575 pcm how would it be proved?

luckyfool

Normally the valuer will give a market rent for the property.

If it is currently let out for a figure then obviously they will take that into account.