Best Buy to Let Interest Rate

brunel07

Hi,

First post, so please go easy

Im looking for the best buy to let mortgage deal for a 70% loan. Purchase price is £145,000, loan required is £100,000. I dont mind if its a tracker, a fixed or variable mortgage. I also dont mind if its an interest only or a repayment mortgage.

Ive been looking into this for the last couple of days, its been a real headache, I dont feel like im getting the best deals out of the companies. The best deal I have found so far is:

4.5% interest, 2 year tracker, with a 2% arrangement fee.

I was told that if I posted this here, the guru's would be able to improve on that, so I would really love to hear if you can improve on this, and help me save my precious pennies. The best interest rates are always blighted by huge setup fee's!

Regards,

James

VIGILANT22

James ...why dont you speak to a whole of market adviser...the mere fact you posted this........ "I also dont mind if its an interest only or a repayment mortgage"...suggests you dont have much experience in the btl market...an appointment with an experienced advisor will be an investment......

brunel07

Hi,

I've registered with online advisors, and this is the best rate so far, but it still seems like a pretty poor deal.

In regards to the interest / repayments, I could afford a repayment mortgage if neccessary.

VIGILANT22

online advisors??
The capital element is subject to tax ie investment

brunel07

Hi.

I am aware that capital gains tax is payable ONLY when you sell it.

I don't need an advisior, I know what I am after. I came here because I was told users on here have a good understanding of the market and may be able to give me information in who is offering the best rates.

As much as I appreciate your reply, I feel like you are missing the point of my thread.

VIGILANT22

brunel07 wrote: »

Hi.

I am aware that capital gains tax is payable ONLY when you sell it.

I don't need an advisior, I know what I am after. I came here because I was told users on here have a good understanding of the market and may be able to give me information in who is offering the best rates.

As much as I appreciate your reply, I feel like you are missing the point of my thread.

quote: I don't need an advisior....:)

I will repeat again….. by your remarks you most certainly would benefit from advice.
Repayment Mortgage = A mortgage which involves the repayment of both capital and interest.
For tax purposes with a BTL mortgage : Mortgage interest is an allowable expense against rental income, but the capital element is not allowable.
At no time did I mention CGT!!

brunel07

Ok, I understand what you were getting at now. I was referring more to interest only mortgage. I have been buying and letting property for 3 years, so im not completely clueless, although im sure I have much to learn too.

I have been to advisers via the estate agents. They gave me one rate. I already have bettered that rate online, so my confidence in advisers is slightly lacking.

To save this going around in circles, I am here because I would like to see if anyone knows of a good deal currently on mortgage's, better than my current rate. This is the only aspect im interested in at this moment in time.

VIGILANT22

Pointless seeing mortgage advisers in EA's as they are very rarely whole of market.
Don't be taken in by rates, fitting the current criteria is the most important factor with BTL's....that's why the services of a good experienced whole of market adviser is invaluable

new_home_owner_3

VIGILANT22 wrote: »

Pointless seeing mortgage advisers in EA's as they are very rarely whole of market.
Don't be taken in by rates, fitting the current criteria is the most important factor with BTL's....that's why the services of a good experienced whole of market adviser is invaluable

And let me guess??? you are one?:T

Premier_2

brunel07 wrote: »

Hi,

First post, so please go easy

Im looking for the best buy to let mortgage deal for a 70% loan. Purchase price is £145,000, loan required is £100,000.

...

The best deal I have found so far is:

4.5% interest, 2 year tracker, with a 2% arrangement fee.

I was told that if I posted this here, the guru's would be able to improve on that, so I would really love to hear if you can improve on this, and help me save my precious pennies. ...

I'm no guru, but suspect that is about the best deal with a 70% LTV.

brunel07 wrote: »

...I have been buying and letting property for 3 years, ...

Is there any equity in another property you could draw on? If you could get the loan down to 60% LTV, (£87,000) you could probably knock another 0.5% off the interest rate and pay about £1000 set up fee. (about 1%)

Of course, you'd then need to consider the costs, in particular set-up/admin costs, of refinancing the other property.

brunel07

I understand that an adviser is invaluable, but I was hoping to also get some friendly advice on here too.

I'm no guru, but suspect that is about the best deal with a 70% LTV.

Thank you for the reply. Its crazy, several offers were very similar, coming in by about 50p per month on the repayments of each other, but im convinced with a bit of searching I can save myself at least a small amount.

s there any equity in another property you could draw on? If you could get the loan down to 60% LTV, (£87,000) you could probably knock another 0.5% off the interest rate and pay about £1000 set up fee. (about 1%)

Interesting idea. Yes, i have but the one but the rate im paying on that isnt as good as the rates i am looking at for this mortgage. In this case im not sure I could squeeze any benefit out of doing it this way, although I could be wrong.