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Anyone doing BTL with no penalties for overpayments ?

stylus360
stylus360 Posts: 448 Forumite
Part of the Furniture 100 Posts Name Dropper Combo Breaker
in Mortgages & endowments
Hi

Got a couple of houses which i rent and i am in the position to purchase another.

They have very small mortages left on them and i would pay them off but can not as i have restrictions (2 years max overpayment £500 month for 2 years). Have 13 months left.

I am looking at another property at an excellent price and want something totally flexible so i can pay it off quickly.

I have about £250k in Equity and £30k in shares.

Cheers
«1

Comments

  • kingstreet
    kingstreet Posts: 39,333 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Purchase price, mortgage amount needed and monthly rental income please?
    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.
  • stylus360
    stylus360 Posts: 448 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Purchase £45k, Mortgage £40k, Rental Income £450 month.
  • stylus360
    stylus360 Posts: 448 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Can get bigger deposit if required.
  • kingstreet
    kingstreet Posts: 39,333 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    So you're buying for £45,000 putting down £5,000 and borrowing £40,000?

    I'm not sure there's anyone doing BTLs at 88%, so your bigger deposit is likely to be needed. 85% will get you a mortgage, 80% will get you a better rate.
    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.
  • kingstreet
    kingstreet Posts: 39,333 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    85% loan to value (£38,250 on £45,000) one lender - C&G.

    80% loan to value (£36,000 on £45,000) three lenders - TMW, Post Office, C&G

    75% loan to value (£33,750 on £45,000) thirteen lenders, TMW, Post Office, C&G, Halifax, Aldermore, BM Solutions, HSBC, Kensington, Platform, N&P, NatWest, Paragon, RBS.

    You'll have to check out the overpayment facilities based on what you decide to do with the deposit.
    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.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Check minimum valuations on properties for the lenders. Many will not want to do property with a value of 45k.
    I am a Mortgage Adviser
    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.
  • kingstreet
    kingstreet Posts: 39,333 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    GMS wrote: »
    Check minimum valuations on properties for the lenders. Many will not want to do property with a value of 45k.
    Aye. Minimum value and minimum income requirements. Kensington for one is £90k. Shame Mortgage Brain can't filter them out.
    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.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    kingstreet wrote: »
    Aye. Minimum value and minimum income requirements. Kensington for one is £90k. Shame Mortgage Brain can't filter them out.

    Now that would be doing what it is designed for and charged for!!!

    Trigold no better if it's any consolation.
    I am a Mortgage Adviser
    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.
  • kingstreet
    kingstreet Posts: 39,333 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    GMS wrote: »
    Now that would be doing what it is designed for and charged for!!!

    Trigold no better if it's any consolation.
    We've just changed from Trigold after six years. Both have their limitations. Shame the merger didn't go through. We might have got the best of both.
    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.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    kingstreet wrote: »
    We've just changed from Trigold after six years. Both have their limitations. Shame the merger didn't go through. We might have got the best of both.


    Not too sure there is a decent system between them. As the old saying goes, 2 wrongs don't make a right!!
    I am a Mortgage Adviser
    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.
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