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remortgage pains
navarato
Posts: 65 Forumite
Hi
I am about to remortgage my buy to let. I have been suggested two products by a broker, which are the best i could find for buy to let currently.
The first product is a 4 year fix 5.99% and permits overpayments up to 10% p.a.
The second product is a whole 1% less than the first and is a 2 year fix, but no overpayments permitted.
Legal (£300) and valuation costs (£400) are roughly about the same for both products, except with the second product there is a chance of cashback which would mean i would recoup the valuation charge.
I would prefer a long term product with the option to overpay but am tempted by the much lower interest rate...not sure what i should do? Help please! Many thanks
I am about to remortgage my buy to let. I have been suggested two products by a broker, which are the best i could find for buy to let currently.
The first product is a 4 year fix 5.99% and permits overpayments up to 10% p.a.
The second product is a whole 1% less than the first and is a 2 year fix, but no overpayments permitted.
Legal (£300) and valuation costs (£400) are roughly about the same for both products, except with the second product there is a chance of cashback which would mean i would recoup the valuation charge.
I would prefer a long term product with the option to overpay but am tempted by the much lower interest rate...not sure what i should do? Help please! Many thanks
0
Comments
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If you make overpayments they reduce the interest-element of your mortgage payments, increasing the income tax you pay on the rent you receive. Is that a good thing for you?I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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The interest you pay on your BTL is tax deductable and unless you plan on selling the property in 2 years why not take the long term fix for security!
What would you do if rates are 8/9/10% in 2 years because the EURO has fallen0 -
Thanks dimbo61: it all makes sense. I certainly do not want to sell this property and the reason why i'm concerned about overpayments is because i want the mortgage paid off asap as i may want to live in it myself in the future. Therefore, i will probably go for the long term option.0
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Hi all
I'm still shopping around for a buy to let remortgage...does any one know of any good deals? thanx0
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