Help with Bank of Scotland BTL mortgage

bigpat

Well it turns out I was right all along.

..you will never move onto the red text, unless you reached the end of the (25 year?) term ..

Not true. This applies from the end of the fixed rate deal, because as I thought the Home Loan rate IS the base rate for the purposes of this mortgage, so the 1.95% is added to whatever that rate happens to be at the end of the fixed rate part of the deal.

I spoke to a lady at Bank of Scotland today and she confirmed that if we were moving to the variable rate today, it would be 6.79% i.e. the current Home Loan rate of 4.84% +1.95%.

I've never been so peed off to be proved right!

Beecher's post at least had a more recent link than mine (must get onto them about that!) but I suppose if the 4.84% hasn't dropped after the half-point cut last week, then it's probably not going to. If anything, it could rise.

B U G G E R ! :mad:

beecher

Oh dear. That's a shame - at least you know now and will be prepared if that is any consolation. I'm sure there are plenty who just assume they're going onto base rate plus 1.95% - think of the shock they'll get!

hearts

bigpat wrote: »

Well it turns out I was right all along.



Not true. This applies from the end of the fixed rate deal, because as I thought the Home Loan rate IS the base rate for the purposes of this mortgage, so the 1.95% is added to whatever that rate happens to be at the end of the fixed rate part of the deal.

I spoke to a lady at Bank of Scotland today and she confirmed that if we were moving to the variable rate today, it would be 6.79% i.e. the current Home Loan rate of 4.84% +1.95%.

I've never been so peed off to be proved right!

Beecher's post at least had a more recent link than mine (must get onto them about that!) but I suppose if the 4.84% hasn't dropped after the half-point cut last week, then it's probably not going to. If anything, it could rise.

B U G G E R ! :mad:

I must apologise. I just checked again and the terms are as I said but my provider on the ones I checked were BM. Sorry.

bigpat

No problem hearts.

You sound like you have multiple BTLs there, am I right? And probably years of experience? Do you - or anyone else - have any suggestions on whether I'll be able to get a new deal from any lender? (I know it's months off yet)

Current payments are £348 and will probably jump to £447 if I have my sums right.
Current rent is £470, so from a fairly comfortable 135% of mortgage, it will come down to a pretty tight 105%. I don't think I could raise the rent, well maybe a tenner a month, tops.

Also, as the value has dropped my LTV will have gone above 90%. I guess I'm not an attractive proposition to a lender, yet I keep coming back to the fact that I've rented it successfully for three years and had no real issues and I see no reason why I couldn't go on doing it.

Am I to be stuck with the BoS variable, or do I have options?

Thanks all,

Pat.

hearts

You will find it impossible to move if your LTV is less than 25%. Even if you could move you will find that BTL mortgage rates are very high at the moment.
Only 2 options I can see. Increase the rent if its at all possible. But be wary of this, if you have a good tenant you don't want to lose them
Change your mortgage to Interest Only if not already on this.

GOOD LUCK