remortgaging buy to let

nibbs

My buy to let fixed rate ends 31/12, I only own one property but am currently overseas and so have had to transfer to a buy to let mortgage. As my fixed rate is ending 31/12 I contacted my provider to ask if I could transfer to a new BtL fixed scheme from Jan 1st. I was told that they would only lend 65% of the home value. I was not concerned as my mortgage is less than 50% of my homes value, however they said this was not the case and quoted the value of my house when I purchased it 8 years ago. I asked if i could get the house revalued and they said no they will not revalue even after 8 years. Can they use a figure that is so out of date?

hoggums

They can do anything they like - it's their money they are lending to you.

To be honest I think you have an over inflated view of your house's worth. Prices haven't gone back to 2000 levels yet but I think it's only a matter of time.

nibbs

Thanks for replying so quick.

I think my assessment of my houses value is fair given recent sale prices of the same design of house on the same street though I appreciate they're likely to fall further. I just (rightly or wrongly) felt that using such an out of date valuation was unfair. However, after working through the figures, in my case the fees to secure any fixed or discounted rate deal from my current lender are so high compared to the monthly reduction in mortgage it's not worth doing. I guess I just sit it out and hope products eventually improve.

Toughluck

The only way you will get around it is to change lenders and get a survey done. If it comes in what you think then great, if not you will have to face facts and understand the house is not worth what you think it is worth.

buy to let mortgage swith the majority of lenders carry a % arrangement fee. You can sit around for a while and see what products are doing......however I was telling people this back in Feb and it has got even worse. you may spite yourself by not taking that product with them irrespective of the fee. Who is your current lender by the way?

nibbs

Currently with the Coventry BS. The fees to change are currently double the saving I'll make if I opt for their fixed products as opposed to their standard variable rate as it is today.