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Remortgaging worries
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wraynephew
Posts: 2 Newbie
Hi and thanks for any help in advance.
I bought a buy to let property 5 years ago with the Woolwich/Barclays and the fixed rate deal on the property is coming to an end in just over a month.
The property is worth around £400k and I need to mortgage £297k so about 75% LTV.
As my tentants moved out I moved in to the property two months ago and I contacted the Woolowich to see if I could move this on to a personal mortgage with a fixed rate once my current deal expired and they declined as the salary multiplier's didn't match their requirements. My salary is £58.5k plus a non guaranteed bonus of £8k and £7.2k income in rent contribution from my partner and they only go upto 4x salary. Also I do have some other loans which amount to £500 per month in repayments.
Having looked around I'm getting slightly concerned that I'm not going to be able to find a fixed rate deal and am going to get seriously stung when interest rates rise and at that point won't be able to afford the repayments. I've considered going for another BTL mortgage but I guess that would mean I'll need to move out of the property which is not ideal and even then it seems that most people are looking for a LTV of around 60%.
Can anyone recommend any good deals out there that might work in my situation?
Once again thanks in advance for any help
Cam
I bought a buy to let property 5 years ago with the Woolwich/Barclays and the fixed rate deal on the property is coming to an end in just over a month.
The property is worth around £400k and I need to mortgage £297k so about 75% LTV.
As my tentants moved out I moved in to the property two months ago and I contacted the Woolowich to see if I could move this on to a personal mortgage with a fixed rate once my current deal expired and they declined as the salary multiplier's didn't match their requirements. My salary is £58.5k plus a non guaranteed bonus of £8k and £7.2k income in rent contribution from my partner and they only go upto 4x salary. Also I do have some other loans which amount to £500 per month in repayments.
Having looked around I'm getting slightly concerned that I'm not going to be able to find a fixed rate deal and am going to get seriously stung when interest rates rise and at that point won't be able to afford the repayments. I've considered going for another BTL mortgage but I guess that would mean I'll need to move out of the property which is not ideal and even then it seems that most people are looking for a LTV of around 60%.
Can anyone recommend any good deals out there that might work in my situation?
Once again thanks in advance for any help
Cam
0
Comments
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A BTL mortgage would need to be supported by the rental income, and at 297k the rent would need to be pretty high.
What would it rent for?
If your salary does not support the mortgage then you cannot convert to a residential, and you cannot live in a BTL.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks for the quick response.
Rent would be between £2k to £2.2k per month. I think that would cover the requirements most lenders have but the LTV is what's concerning me as I'm not seeing many which offer fixed rates at 75% LTV0 -
There are BTL's available up to 85% subject to meeting criteria.
Might struggle with that rental. Typically 125% of mortgage payment needed.
Maybe worth a chat with a brokerI am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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