buy to let interest rate

mrscb

OH is trying to negotiate better deal..he has been offered 4.99% fixed for 5 years with current lender for £49 fee...is this good or bad?

happybroker

ltv and rental coverage?

mrscb

sorry.
current mortgage £ 20000 11 years remaining
value of property £65000 at least.
rent covers mortgage plus 25%

happybroker

good.........in a word!

mrscb

Thanks... that what i thought... but he asked me to look about for him.
I didnt think he should swap lenders as i heard fees are horrendous.
:beer:

RomansProperties

If you do change lender the fees on a £20k mortgage wont be that much
Also some lenders have a minimum amount they will lend and £20k will be below most.
I do think the rate is good.
Its not much risk for the lenders to try and recover £20k though if there is any problems.

mrscb

Think i will tell him to just do it...a lot less hassle all round.:beer:

dimbo61

Could you try and clear the mortgage in 5 years ?
Take a 5 year term and change onto repayment or save the £20k into regular savers and ISA,s and stay with Interest only !