Mortgage Works Buy to let help?

foxyuk

hi guys im on a buy to let with ltv of 50% on interest only and had a 1 year tracker, im now into the standard rate 4.99% a year on however why is it at end of the term you you dont go onto the bank of england rate rather than an inflated rate.

At same time my brother took out btl and he borrowed 10k more however he is £50 cheaper than me ,,, hes with mortgage express

am i missing something??

GMS

The reversion rates are clearly stated. Some lenders go on to Standard Variable Rate (SVR). others will go to a tracker of Bank pase rate + x%, others Libor +x%.

This would have been detailed in your offer.

Meeper

As you are on their SVR, you are free to look around for a better deal as you like without penalty. Personally, I wouldn't ever recommend anyone to take a 1-year tracker followed by 4.99% SVR unless they planned to get rid of the property after the year.

Mrs_Z

BTL loans are commercial by nature - you'll be pushed to find one that'd offer you a flat BoE rate after the 1-2year fixed or tracker or whatever deal. Banks are there to make money out of you, and their rates are clearly stated beforehand. I don't think there are even residential mortgages that would offer you a flat BoE rate.

Your brother obviously got a cheaper deal than you. You need to do your homework beforehand.

I'm on the same boat by the way - I took out TMW 1 year tracker last November, it's now switching to their standard 4.99% but I'm looking to pay off the loan completely - but this was my plan all along.

Why not look to remortgage with a better deal as suggested - you should be out of the penalty period now.

handytips

There are many products out there at the moment that will suit your needs and at 50% Ltv you will not have the 3.5% Arrangement fee that you paid the last time. Many at your Ltv offer free everything. Good Luck

kingstreet

I have a feeling that as time goes by we're going to get more and more disgruntled TMW borrowers checking-in to say they've come to the end of their deal and can't remortgage because of the personal income issue they got around by going to TMW in the first place.

Just an observation - no suggestion this was the OP's reason.