Buy-to-let Mortgages

trynsave

I am struggling to find a comparison website for buy-to-let mortgages. Are there none?

I like to use the Tesco Compare site for residential but when I put in a buy-to-let scenario I have to have someone phone me. Same with other sites I visit - put in your details someone will call you. I would like to do my own research first but hitting a brick wall.

Also if anyone has spotted any good deals please advise. Want £150k as 60% LTV of £250 valuation.

Thanks all.

GMS

Buy to Let mortgages are really varied so it would not be a great idea to rely on a comparison site.

60% could access the better rates. Rental needs to stack up and the vast majority of BTL lenders also require a proveable income of £25,000 as a minimum.

Fees can be huge with some lenders offering decent rates but an arrangement fee of 3.5% meaning a £5250 fee on a 150k mortgage. In that situation it may be worth looking at a deal with a higher interest rate and a lower fee.

Buy to Let mortgage lending is on the increase. Broker only deals are commonplace now.

Why not let a broker run through it with you. Could save you money in the longrun

Leon_W

Most BTL lenders will only deal with brokers and do not wish to solicit business direct from the public so the majority of information on such mortgages is not available to comparison sites.

trynsave

Many thanks for the speedy replies.

We have already contacted London & Country to seek out a good deal for us - which i think they have. I am just a bit of a Doubting Thomas and whilst I do trust them (as they have arranged good residential mortgages for us in the past), I like to see everything with my own eyes. I know that they are doing their job and that they know what they are doing, but it is our money, our debt, our risk so I just wanted to be sure that we were going into this armed with as much information as possible.

I am pleased that I haven't missed a comparison website - thought I was going a bit barmy!

jimjames

There are some great deals out there, I can't remember which comparison site I found it but I've been offered 3.85% based on 1.64% off SVR lifetime rate which none of the brokers were able to match. Thats on 70% LTV but their rules are pretty strict.

http://www.mhbs.co.uk/buy_to_let.aspx

Thrugelmir

jimjames wrote: »

There are some great deals out there, I can't remember which comparison site I found it but I've been offered 3.85% based on 1.64% off SVR lifetime rate which none of the brokers were able to match. Thats on 70% LTV but their rules are pretty strict.

http://www.mhbs.co.uk/buy_to_let.aspx

That's still 3.35% above base for the duration of the mortgage.....

jimjames

Thrugelmir wrote: »

That's still 3.35% above base for the duration of the mortgage.....

At the moment yes it is 3.35% above base but that is not the margin for the duration as it is not a tracker.

When base rate returns to more normal levels then I wouldn't expect the SVR to still be that high above base. If it is then the mortgage also doesn't have any early repayment penalty so would just move it.

Either way I think it is a good deal at the present time.

Thrugelmir

jimjames wrote: »

When base rate returns to more normal levels then I wouldn't expect the SVR to still be that high above base. If it is then the mortgage also doesn't have any early repayment penalty so would just move it.

About normal for pre boom times.

Commercial lending has historically been 1% above SVR, which in itself was 2%. So 3% for BTL lending seems about right.

That's why there only 30,000 commercial property loans in 1997.

The term BTL was created by the now defunct B&B.

trynsave

jimjames wrote: »

There are some great deals out there, I can't remember which comparison site I found it but I've been offered 3.85% based on 1.64% off SVR lifetime rate which none of the brokers were able to match. Thats on 70% LTV but their rules are pretty strict.

http://www.mhbs.co.uk/buy_to_let.aspx

Just found this site
http://moneyfacts.co.uk/compare/mortgages/buy-to-let/

jimjames

Thrugelmir wrote: »

About normal for pre boom times.

Commercial lending has historically been 1% above SVR, which in itself was 2%. So 3% for BTL lending seems about right.
.

Except this is 1.64% below SVR, so well below what you would expect for commercial lending and the same rate you would get for a standard mortgage (Nationwide are currently offering 3.79% as a 2 year discount)