Asked to move mortgage - what next?

boyse7en

We have had a letter from our mortgage provider, who have the mortgage on our LTB house (been renting it out for 8 years)

They would like us to move to another mortgage supplier, and are willing to forego any early redemption penalties. Trouble is, that as our fixed-rate period with them is over in September, and we have no lock-in period after that, it actually isn't that good an offer. There don't seem to be any BTL mortgages out there, certainly not at a better rate than the 5.4% I'm on at the moment.

So if I don't move to another mortgage provider, what can they do? Can they just cancel my mortgage with no notice, or what?

_Andy_

It will just mean you continue on their SVR.

opinions4u

boyse7en wrote: »

We have had a letter from our mortgage provider, who have the mortgage on our LTB house (been renting it out for 8 years)

It could help other readers if you named the lender.

They would like us to move to another mortgage supplier, and are willing to forego any early redemption penalties. Trouble is, that as our fixed-rate period with them is over in September, and we have no lock-in period after that, it actually isn't that good an offer. There don't seem to be any BTL mortgages out there, certainly not at a better rate than the 5.4% I'm on at the moment.

Call them. Ask them what else they can offer you. Ask for 5% of the balance or more and see what they say! Worst answer is "no chance"!!

So if I don't move to another mortgage provider, what can they do? Can they just cancel my mortgage with no notice, or what?

Put you on their standard rate. Only problem is, they might, over time, increase it.

boyse7en

Yep, fair enough - it's Bradford and Bingley, which I believe is being propped up by the taxpayer, so is unlikely to stump up a cash bung just to get me off their books (can you imagine the outcry!)

We will move onto a rate of BoE +2.5% at the end ofthe fixed period, which is pretty good for a BTL tracker. Obviously it may increase in the future, but the best offer I've had at the moment is 7.9% fixed for 3 years, which is neither low enough nor long enough fix to be worth it.

I'm mainly worried whether they can arbitarially ask for the mortgage to be paid-up at short notice, as it may be difficult to find an alternate mortgage provider in the future.

Thrugelmir

boyse7en wrote: »

Yep, fair enough - it's Bradford and Bingley, which I believe is being propped up by the taxpayer, so is unlikely to stump up a cash bung just to get me off their books (can you imagine the outcry!)

We will move onto a rate of BoE +2.5% at the end ofthe fixed period, which is pretty good for a BTL tracker. Obviously it may increase in the future, but the best offer I've had at the moment is 7.9% fixed for 3 years, which is neither low enough nor long enough fix to be worth it.

I'm mainly worried whether they can arbitarially ask for the mortgage to be paid-up at short notice, as it may be difficult to find an alternate mortgage provider in the future.

How long is the term of the tracker with B&B?

opinions4u

I'm mainly worried whether they can arbitarially ask for the mortgage to be paid-up at short notice, as it may be difficult to find an alternate mortgage provider in the future.

No they can't.

it's Bradford and Bingley, which I believe is being propped up by the taxpayer, so is unlikely to stump up a cash bung just to get me off their books (can you imagine the outcry!)

Mortgage Express have been named as a lender that will waive a lot of fees etc. They are owned by B&B. No outrage.

boyse7en

Thrugelmir wrote: »

How long is the term of the tracker with B&B?

Rest of the mortgage, so 22 years left...

Thrugelmir

boyse7en wrote: »

Rest of the mortgage, so 22 years left...

So why not stick to the SVR. Use the difference in rates to pay down your mortgage as quickly as you can in the first instance. This would enable you to find a better deal in the longer term. Or enable you to exit your investment.