£490K mortgage needed - advice please

THEPUMA

Hi

I need to remortgage £490K. The property is worth £600K and we have another unencumbered property worth £140K which is let. Our joint income is £150K plus bonuses of say £25K.

Can anyone advise on the best deal out there for us?

Thanks

AndrewSmith

Hi and welcome to the forums,

It is impossible to advise without all the facts.

It depends on what you want the remortgage for, is it your main residence, your credit history, your employment status, current lender, existing other credit agreements (loans etc), how long you want it for, your age etc.

Post more specific details and I am sure the answers will be forthcoming.

Andy

THEPUMA

Thanks

It is to remortgage and pay off existing debt on BTL. No credit problems. Current lender Bristol & West. No other debt. 2 or 3 year deal required. Age 32 (wife 31).

AndrewSmith

Hi,

A good one is the Bank of Scotland 4.25% 2 year tracker. Free legals, free valuation. Booking fee of £599 (can be added to the loan).

There are lower rates (Northern Rock etc) however they require an arrangement fee payable to the lender of, in your case, in excess of £7,000 !! Also beware of products offered with low initial rates that jump up after the first year.

Hope this helps

Andy

herbiesjp

As Andy states rightly BoS do have some good schemes at the moment - another option could be a 3.99% two year tracker same fees apart from the arrangement fee which is £1499

Impossible to confirm suitability but hope it helps

stanmoresaver

The 0.26% difference on an interest only basis equates to £106.16 pm (£2547 over the two years), the difference between the fee's is a fair bit less but you have to weigh up what is important to you- if the arrangement fees are added, remember you will pay interest on the amount and then pay it when you settle the loan, either on repayment or remortgaging.


HTH

SS

(Herbiesjp- got your mail- should be with you by the end of the week!)

regularsaver1

will you still let the property that had the BTL mortgage on?

if you repay this, you will need to consider tax implications

THEPUMA

Yes I am still going to let the BTL but I understand that I can claim tax relief on the new mortgage interest.

herbiesjp

That is indeed correct, as it is not necessarily the property the mortgage is on but rather the purpose of the loan.

tbg_2

Tax Relief on the mortgage interest ?

Whassis ?? I'm interested - we have one BTL as well as our own residential mortgage....

:-)

payless

Needs to keep clear audit trail of what part is what for tac purposes
( had a number of clients check this oput directly with own tax office first! )

Some people prefer to keep lending secured against a "B2L" secured on that property rather than secured against main residence.

But in theory if equity & income & happy with risks highlighted above ( lenders often will still take rental income into account ) is enough then one can combine and generally obtain keener rates.