Buy to Let Mortgage

flowerstar_2

New to this site and wondered if anyone could shed any light?

I have a buy to let mortgage with mortgage express which is coming to the end of a 2 year fixed deal and was hunting around for something which will release some equity to fund a further buy to let. The problem is - I'm looking for a product that will lend based on 100% of rental income and also a high LTV. Mortgage Express will lend 85% Ltv but require 130% of rental income - it wouldn't be worth the fee to draw down frankly. I found Northern Rock do 87% LTV and 100% of rental income but their best current rate - 3.99% has a large overhang, which I'd rather do without. They have a 2 year at 5.49% with no redemption/overhang after this period but obviously this would make the monthly payments bigger. Ideally, I'd like to know if it's possible to have a low rate fixed rate with no overhang/redemption and at a minimum LTV of 85% with a 100% rental income to match monthly repayment!! Not much then!! Are there any experienced buy to let investors out there who are well versed in borrow to fund further investment? Any help extremely gratefully received.

herbiesjp

What is the property price?

What is the mortgage needed?

What is the rental income?

socrates

I too have just come to the end of a 2 year fix. My broker has put me in touch with Clydesdale Bank. They are offering a 2 year fix 0.35% over base with no solicitor or valuation fees.

Apparently they want to attack this market and gain market share.

Not sure if it is exactly what you need but another broker told me to bite their arm off.

herbiesjp

Clydesdale BTL rates have just increased and offer 130% cover, not 100% cover

socrates

Lucky I got in there at the right time then

flowerstar_2

The property value is £125k (it's been valued by a local estate agent) and the outstanding current mortgage is £68k, so I have approximately £57k in equity.

Assuming Northern Rocks LTV of 87% would release me a £108,750 mortgage (apologies if I've calculated this wrongly!) thereby releasing cash of £40,750. The arrangement fee is £895 then I have valuation circa £400 plus legal and other associated costs.

The rental income is £500 (I have a current tenancy agreement in place) and as the interest only repayments are JUST under this, it fits perfectly in all aspects apart from the APR.

If I got a lower APR mortgage I'd be quite happy to borrow 85%? So long as my monthly payments were lower and I had the capital I needed to fund my next project I'd be ecstatic!!

Is there one out there?!!!

P.S. If any of my sums are wrong I apologise - I am 7 months pregnant and flooded with hormones plus I have a 13 month daughter tugging at my legs whilst trying to type!! Well, that's my excuse anyway! :rolleyes: