Advice Please

JPMiddleton

Hello folks,

I have been reading this forum for a few months and have seen some great advice and information given - now I have a question of my own.

I currently have a mortgage left of £99k with Nationwide on a fixed rate for 10 years; of which I have 4 years left, I am currently on an interest rate of 5.55% (up from 5.05% as I am not living there myself) I intend on paying a lump sum of £50k into this in the near future. There will be an early repayment charge of £1.2k for paying the £50k and there would also be a £2.3k early repayment charge if I moved to a new mortgage provider.

So my question is, am I likely to find a deal which is significantly better enough to make it worth my while or due to the fact I am currently essentially operating as buy-to-let, would it mean the deals are not much better for me?

I have done some research around the mortgage providers' websites but cannot find an answer.

Any help on this from members would be much appreciated.

TrickyDicky101

Is that really all your ERC is on the £50k overpayment? I would take that like a shot - you will pay out twice that in just a single year on the amount of mortgage you would pay back.

I am no mortgage adviser, but I assume were you to go anywhere else you would need a BTL mortgage and thus would be stiffed for high rates and fees making it uneconomic from your current deal.

holly_hobby

Moving and qualifying for a BTL mortgage would depend upon the LTV you have i.e what % your mge represents of the overall value of the property.

Looking at the fees, and comparing a similiar fixed period with other alternative BLT providers I had a quick look at (thats if you want to remain on a fixed of course) and, in conjunction with the ERCs that would be levied by your current lender - I think I would stick.

Don't forget you need to be declaring your rental income to Mr Taxman too ....

Hope is helps

Holly