We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Buy to let mortgages
larsony
Posts: 38 Forumite
A friend and I have some spare cash and want to share a buy to let property. We've looked at mortgages and found one from the Portman BS.
It's fixed and the rate is 4.44% for two years, thereafter rising to 1.99% above base. For the size of mortgage we want the set-up fee will be £750, taking the rate over two years to 4.66%.
Our plan is to stick to paying the interest of in the hope that we make some money from the capital.
But does anyone know what would typically happen at the end of those two years if we decided to remortgage to avoid having to switch to the 1.99% above base rate?
What fees and penalties would we have to pay? Are we likely to save any money remortgaging with the same provider? Is there anything else we should consider.
Can I add that I eff-ing love this site.
Thank you!
It's fixed and the rate is 4.44% for two years, thereafter rising to 1.99% above base. For the size of mortgage we want the set-up fee will be £750, taking the rate over two years to 4.66%.
Our plan is to stick to paying the interest of in the hope that we make some money from the capital.
But does anyone know what would typically happen at the end of those two years if we decided to remortgage to avoid having to switch to the 1.99% above base rate?
What fees and penalties would we have to pay? Are we likely to save any money remortgaging with the same provider? Is there anything else we should consider.
Can I add that I eff-ing love this site.
Thank you!
0
Comments
-
the fees you pay to re-mortgage after the two years will be printed on the contract. just take these into account if you switch after two years. who knows what deals will be around then!0
-
This is not such a great product, after the 2 years at 4.44% you then have overhang penalties of 4%, 3%, 2%, 2%, so for 4 years you will be paying 1.99% over base (i.e. 7.24% on current bse rates) or paying up to 4% of the capital balance to switch (even if you switch to another Portman product).
I'm sure you can do much better than this, you may be paying more like 5.5% initially, but then not have any expensive tie ins.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.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247K Work, Benefits & Business
- 603.6K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards