Interest only buy to let mortgage cost

ellisy

Hi

I currently have a repayment mortgage on my flat which is £188k and costs £990 per month. I want to let my flat out to move in with my partner and have enquired with my lender Natwest how much switching it to a buy to let interest only mortgage would be each month and they quoted £860. This seems quite high to me, what does anyone else think?

ALso they said it was easy to transfer i just fill out a form and pay £100, does that sound normal?

many thanks for any replies.

Doozergirl

That sounds normal to me. You'd expect a slightly higher rate for BTL so not too much of a drop. And yes, you'd expect to pay an admin fee.

Not sure what a new BTL mortgage would cost these days - probably more than that!

PasturesNew

What rate of interest did they quote? What're you paying already? It would be normal to expect to pay about 1% more on a BTL if switching.

Bermuda_John

4.75% with 25%deposit is possible with BM solutions

Fire_Fox

Don't forget to factor in income tax, capital gains tax, letting agents fees, landlord's insurance, and plan how you are going to pay the mortgage when the flat is empty between lets or if you get a non-paying tenant.

bryanbukowski

Why were you looking to rent your property out?

If it was to make a profit then in most cases this would be unlikely. Any profit would come from selling your property for more than you paid for it.

Whilst the present market isn't a good example, on average property prices increase by 4% per year so you can expect a return from them over a reasonable period.

You can start profiting from rent once the mortgage is paid off so stick with the repayment mortgage for the time being

B