remortgage from res to BTL

LJN35

Hi, I'm hoping someone can make things clearer for me! We bought our house in 2002, the relocated (renting) and rented out the house on a 2 year permission-to-let agreement in 2010. This 2 year agreement is nearly up, so we will need to remortgage, but to a buy to let mortgage instead of a residential one.

I'm not sure if this means the application will be treated as if it was a brand new purchase, and will therefore have to go through the entire valuation, survey etc etc. Also, will we incur stamp duty, even though we already own the house, and have done since it was built? I expect the process would be simpler if we stayed with our current lender, but their rates don't seem to be the best in comparison with other lenders at the moment, so we could be tempted to switch. Unless of course this would result in different answers to the questions above?!

Any advice will be gratefully received!

Thanks

betmunch

You just need to remortgage to a BTL mortgage.

There will be a survey to be done, but no Stamp Duty to be paid.

sjlou

as betmunch said no stamp duty to be paid, its just a remortgage not a new buy.

although youll find that arrangement fees on btl mortgages are high.

betmunch

sjlou wrote: »

although youll find that arrangement fees on btl mortgages are high.

Rather sweeping statement, on my sourcing system I have over a page of products with no arrangement fees. Half a page of products with only very minor fees.

What fees the OP ends up paying will depend on their personal circumstances, but if they want one with low fees theres plenty out there.

sjlou

sorry, should have phrased that better...

btl arrangement fees tend to be higher than for residential mortgages, as we have recently found out when looking at btl mortgages with our broker.

Thrugelmir

betmunch wrote: »

Rather sweeping statement, on my sourcing system I have over a page of products with no arrangement fees.

Which lenders are offering fee free deals?

dimbo61

speak to your existing lender first as they may allow you to extend your consent to let and this maybe the cheapest option

LJN35

Thank you! Some good advice, I will definitely see what our existing lender can do for us first.

gwernybwch

Thrugelmir wrote: »

Which lenders are offering fee free deals?

I'd also be interested in knowing which lenders are doing fee free deals on their BTL mortgages.

Dave_Ham

Whilst there are fee free deals on the marketplace, typically through brokers; you get what you pay for...

Therefore and this is no surprise that they are fee free and the rates are higher. Ordinarily the fee charging products, may still work out a more commercially attractive option depending on the loan size...

Thrugelmir

Dave_Ham wrote: »

Whilst there are fee free deals on the marketplace, typically through brokers; you get what you pay for...

Typically? I've yet to see one on offer direct from a lender of note.