buy to rent mortgage help please

twe

hi guys....

I am looking to get a £204,000 mortgage on a by to rent property.....

Would it be best to take out a 3 years mortgage or 5 years?

Can anyone provide me with the best/cheapest prices etc....


currently my financial advisor has given me the option of a 3 year btl tracker with a rate of 0.24% above the bank base rate, which means it is currently at 5.49%
A survey fee is £330 and £1199 admin fee.....

please help asap, thanks

Mr_helpful

I take it you dont trust your adviser. I think it would be non compliant to publish rates that might be suitable without a full fact find

twe

the advisor has been helping the family for years.... so as the family trust him i do as well... however there is always a possibility that i could find a better mortgage than he can and how better but to ask on mse.....

and what do u mean by full fact find?

kchok

Mr helper is possibly trying to look after his own may be some body should remind him MSE.
I don't know your circumstances if you have 20% deposit I saw on woolwich website about buy to let mortgage as
0.23% above Barclays Bank Base Rate (currently 5.25%), for the mortgage term
Giving a rate of 5.48% variable,No application fee
or
fixed 5.37% until 30/04/2017. application fee £595
i couldn't see on [https://www.woolwich.co.uk but Googled it as buy to let mortgage -go to bbc news website in their link it take straight to the above rates.it might come handy.

twe

do u have the link to the bbc website please... thanks

kchok

Try this link direct to woolwich web page .you will have to phone themto find out more.
http://www.barclays.co.uk/mortgages/google5/?WT.srch=1


"Lifetime Tracker mortgage -
0.23% above Barclays Bank Base Rate (currently 5.25%), for the mortgage term,Giving a rate of 5.48% variable,No application fee
Remove the hassle of remortgaging with our great value Lifetime Tracker mortgage rate - now with an optional cap to protect you from interest rate rises.
Borrow 80% of the value of your home
No early repayment charges so you can make overpayments whenever you want
Subject to a Mortgage Reserve, you can apply for a payment holiday or make underpayments (interest will be charge during this period)

10-year fixed rate mortgage-
Have the comfort of knowing upfront what your monthly repayments will be during the fixed rate period.
5.37% until 30/04/2017 ,application fee £595
Borrow 80% of the value of your home
Overpay up to 5% per year during the fixed rate period without incurring an early repayment charge
Subject to a Mortgage Reserve, you can apply for a payment holiday or make underpayments (interest will be charged during this period)
Early repayment charge: 6% of the balance paid will apply if the mortgage is repaid in whole, part or transferred to another scheme until 30/04/2017",Good luck

Mr_helpful

KCHOK
Thanks for the recommendation. As a non fee charging independent broker I know exactly what MSE is about. If you must know I was wondering why someone with a financial advisor was trying to go behind his back( when that person has invested time and money trying to help a client) and see if he could find better rates by playing one broker off against another. Either he trusts the guy or not. I am not interested in nicking other brokers business and my status as an adviser is stated in my signature.
There is nothing about your interest in this. You give a lot of advice about Barclays / woolwich. It is illegal to give financial advice unless qualified and if you are financially qualified then you have broken a fair supply of the FSA rules with your post I suggest you read MCOB on the FSA site at https://www.fsa.gov.uk

twe

thaks kchok, that deal seems a little better than the best one that the financial advisor gave to me..... and i have forwarded the website to my advisor for him to check out.....

and mr helpful i am not going behind the guys back, just looking for the best options for myself since i am borrowing a lot of money not the advisor....... i have forwarded the details to my advisor so again not going behind the guys back..... i know he gets money from the mortgage provider and i respect that.....

Mr_helpful

TWE
Theres only one problem. The rates KCHOK gave you were residential and not buy to let. This now means that your adviser knows you are not sure of his advice and if he has any sense will now charge a fee or increase his existing one for the extra work.
The FSA gives guidelines which are there to protect you and one of these is that before advice is given the adviser must know his customer which is why some form of fact find is done before advice is given. Due to a lack of knowledge about your circumstances KCHOCK has recommended you somewhat illegally to an unsuitable product. I did not wish to make the same mistake so I cannot publish rates which might be suitable. I was not as the poster ignorantly implied looking after my own

kchok

Mr helpful ,
That just prooves you know what you are talking about.I am just a MSE user always looking to save money. I saw that link and on it it clearly says call them to find more.I didn't even know that was only for residential mortgage.Thanks for your calrification.I am not trying to sell barclay or anybody else's product or anything to anybody.At the end of the day its just word of mouth and share the experience we have had.In this case saw something , copy and paste for people to judge for themself.
TWE was posibly trying to follow MARTINS advice as it states in main article

Read up on how mortgages work (see the Free MoneySaving Guides to Mortgaging and Remortgaging) and provisionally research before going to a broker."
i don't see anything wrong with that.

I guess this article is morally wrong too -

"MORTGAGES-get the best advice for free plus possible extra cash back"

Mr helpful don't get me wrong ,i completly agree with you about the principle.i wouldn't like to do some bodys work for free.people work for living .I hope you will continue to give right advise.

Mr_helpful

kchok
Theres nothing wrong with finding out as much as possible about mortgages in theory. And yes many advisers like me work without charging the client a fee because we take a commission from the lender (as do many advisers who charge fees but instead they keep the fee from the lender as well).
You do have to be very careful about publishing anything with rates as it is nigh on impossible to do it on a forum in a way that would be compliant with the FSA rules That was why I answered the way i did above. Nothing to do with hiding anything.