C&G BTL and SVR

landlord1

Hi, I have a BTL mortgage on one of the flats which I need to switch to another lender as the existing rate is quite high. I am looking at few options and one of them is C&G. They have a 2yrs fixed deal and at the end of the fixed period it switches to their SVR, which is currently 2.5%. C&G website says that their SVR will not go above 2% of BOE rate. However, they are unable to confirm this in writing. My dilemma is if I should rely on the information that is on website or not. What do other forum users think of this? Also, I would appreciate their views on other mortgage offers available in the market.
Many thanks

VIGILANT22

landlord1 wrote: »

I would appreciate if anyone else can advise on better BTL Mortgage offer.
Many thanks

This site is not authorised for advice...it is only opinion here...if you want advice you're better making contact with a whole of market mortgage adviser...

landlord1

VIGILANT22 wrote: »

This site is not authorised for advice...it is only opinion here...if you want advice you're better making contact with a whole of market mortgage adviser...

Appologies for using incorrect words... I would welcome opinion from other forum members.

VIGILANT22

If you're a landlord and this is your investment, don't you believe in either investing your time in research or appointing an adviser.....!! you want other people to do it for you!!........

landlord1

VIGILANT22 wrote: »

If you're a landlord and this is your investment, don't you believe in either investing your time in research or appointing an adviser.....!! you want other people to do it for you!!........

I have done fair bit of research myself and have spoken to mortgage brokers as well (this is why I said I have few options that I am considering). The dilemma that I have is about C&G's SVR pledge and was looking for opinion from others.

VIGILANT22

who knows?...think about Skipton and the exceptional circumstances clause....personally i would believe c&g

PresidentWPM

Two years ago I took out a 54K BTL mortgage @5.29% 2 year fix. The interest-only payments were 236 but, I took out a further advance of 19.5K so that I can grow my portfolio and the payments went up to 325. Now, the 74K mortgage is serviced with a mere 199 pcm. Considering that the rent eventually settled at 600 pcm, my cashflow just became enormous @401 per month.

Incidently, 2 years ago, C&G's SVR was 2.5%. I believe it's 4.84% now. However, I took out another C&G mortgage in 2010 but it was a 3year fix @6.24%. The 45K mortgage attracted a 230 pcm payment. Since then, I've taken a further advance of 8K which has taken the payments upto 266 - a mere 36 pcm for 8K.

I found the C&G have the best SVR to such a point that they have limited these mortgages to 3 per landlord. I can only qualify for 1 more of these generous offers. You can't remortgage to a lower rate than the SVR at least not C&G's. Even if you can, the horrendous arrangement and other fees means you pay more than if you stayed at the SVR.

So when shopping for BTL mortgages, pay attention to the SVR sometimes known as the reversion rate. You're automatically put on it without any arrangement fees or redemption penalties which is what you get when you remortgage.

landlord1, I now it's a bit late, but you should've gone for the C&G offer it was 2.5% - mine was 3.5% and it's a horrendous 4.84% now.

Take Care