Can anyone reccomend a good BTL Mortgage

kazza106

Hi,

First posting here. I have three BTL properties, all of which reach the end of their current mortgage in July/Aug.

As the title says, can anyone reccomend a good BTL mortgage?

The detail are: Property 1 - Value is £200-£220k and mortgage is £180k (Property in London / Mortgage with Birminghmam Midshires); Property 2 - Value is £130k and mortgage is £95k, (property in Scotland / Mortgage with UCB Home Loans) and Property 3 - Value is £175k and mortgage is £90k (Property in London / Mortgage with Derbyshire BS).

For property 1 and 3, I am not too worried in the short term as they both revert to variable / base rate trackers, however, the propert in Scotland with UCB reverts to their variable for BTL's which is currently 5.19% and so could easily rise quite high very quickly.

Oh, and I would like to make Propeerty 2 and 3 Interest only, allowing me to make bigger payments towards property 1 which has the lowest %age equity.

Any thoughts opinions welcome.

_Andy_

What do you mean by 'good'?

You would be better off speaking to a decent whole of market broker who can find something specific to your needs.

kazza106

Hi, Just looking for some options really. I don't want to pay huge arrangement ees and if I am going to fix any of them I would want it for more than 2 years.

luckyfool

property 1 at least is going nowhere due to the equity. You will probably find that it reverts to a relatively attractive 1.99% above base or 2.49% (or something similar). Check the revert rates on the other mortgages also so you can make a decision.

If your valuations are realistic and would be backed up by a valuer as realistic sale prices (worth checking what local properties have "SOLD" for (not on market for) in the last 3 or 4 months to get an idea of that (check Zoopla or similar), then property 2 is marginal and you might be able to get another deal. Probably looking at a 2.5% arrangement fee or similar and around 5.9% with Bank of Scotland or BM Solutions for a 5 yr fixed rate on a remortgage + all the associated costs.

Property 3 is lower ltv and you could possibly qualify for Godiva/Coventry BS 5.4% 5 yr Fixed Rate with £1999 in fees (free val and legals).

If you want a new deal with a new lender then realistically you are probably going to be looking at biggish fees whether you want to or not, what you should also do is check what your mortgages move to at the end of the current deals so you can make an educated decision. Your lenders may also offer "transfer options", though officially BM Solutions on the 1st property only have product transfer deals to 75% which you would probably not qualify for. Worth giving them a call anyway to see if they actually enforce that limit though (their sister lender Halifax have product transfer deals to 95% ltv on residential loans, but actually let customers onto them even if their ltv is as high as 120%).

kazza106

Thanks. I know that the BM Mortgage reverts to 2% above the base rate and that the Derbyshire is 2.99% (I think). It's the UBS one that's on a high variable that I probably have to deal with first. The fixes they offered did not seem very competitive and they reccomended that I look at the rates on The Mortgage Works. Derbyshire will send me out new offers in about a months time. I will call BM tomorrow to see if they are offering anything in the way of fixes.

I was also thinking of increasing my borrowing on property 3 and putting it against Property 1 to give me a better chance of getting a decent mortgage.

kazza106

Sorry, that should have been UCB, not UBS.

herbiesjp

Property 1 - forget re-mortgaging check current lender deals

Property 2 - might sneak in at 75% LTV but you would need to check the deals, and compare against current lender offerings

Property 3 - seems like a good chance of changing, but again compare against current lender deals

All will need the relevant rental coverage

Property types will also affect which lenders could look at these - whereabouts are the London places?

kazza106

Hi. Both in SE London. Property 1 in Lewisham - rented out for £950pcm and property 3 in Deptford - rented out at £825 pcm.