need to remortgage soon

want2bmortgage3

-mortgage: 101k
-property: 2 bedroom leasehold maisonette, lease 69 years remaining
-property value: 140k
-current mortgage: residential 5 year fixed, 4.89%, £660/month repayment, buy to let consent

income £18662 a year

i plan to carry on renting the property out as its recieving £790 rent a month

just wondered how straightforward a remortgage will be? will the lease term be a problem? should i look at buy to let mortgages rather than residential?

thanks in advance to those who reply!

GMS

You would need to remortgage to a Buy to Let if changing lender.

Probably better speaking to your current lender to see what deals they would offer you.

want2bmortgage3

i dont think northern rock are offering any new deals?!

GMS

want2bmortgage3 wrote: »

i dont think northern rock are offering any new deals?!

Speak to a 'Whole of Market' broker to see what is available. Could be that you are better on Northern Rock SVR.

Is the maisonette ex local authority?

want2bmortgage3

gms - no its not ex local authority

Thrugelmir

Lease term will reduce property value for remortgaging purposes.

herbiesjp

Double check with NR what rate you will go on to and what the payments will be. See if they will grant consent to let again.

Reason being is that you may be able to get a BTL deal, but the fees can be pretty high, so it may work out cheaper staying put rather than moving. (thats if NR allows).

want2bmortgage3

i've just had a letter from NR saying my current deal ends on 01 / 01 / 11. the interest rate will then revert to NR SVR at 4.79%. slightly lower than the fixed 4.89%. this reduces my monthly payment by about £10.

would i be likely to beat this rate do you think?

want2bmortgage3

how do i best look for new mortgage deals, in particular buy to let as my flat is rented out?

are there comparison sites, like you have for car insurance? or do i need to find a broker?

am i right that i wouldnt get a standard residential mortgage with an income of 20k for a 100k loan?

so i must go down the buy to let route?

i could take the risk of the SVR @ 4.79 but this could go up at any time?

want2bmortgage3

why are SVR rates still quite high when the BOE interest rate is so low???

if the BOE interest rate goes up will this affect SVR ?

i'm just wondering how risky it is to be on the SVR when it could cause me problems if the rate went up by 1-2%, but on the other hand i cant really afford a fixed rate of around 6% that i've seen quoted.

appreciate any replies and i do thanks others on here!

getmore4less

£790pm £140k gross yield 6.77%

Whats you net rent after costs before mortgage payments?

With a mortgage rate of 4.79% not a lot of room to be making money