buy to rent mortgage help please

kchok

As i am browsing through, I saw some other rates if i read it right looks quite good.please don't take it as advice as it could open doors for me to criticism.Just read through and see it for yourself.

http://www.thecheshire.co.uk/online-mortgage-home-loan/fixed-rate/5-Year-Fixed-Rate-Buy-To-Let-Mortgage-FDE.asp
Buy To Let - 5.58% Fixed to 31.05.2012 - £799 Arrangement Fee

http://www.askbm.co.uk/mortgages/buytolet/tracker.asp

5.34% (Bank of England Base Rate + 0.09% for 3 years,Arrangement Fee £699
5.35% (Fixed until 01/05/2010),Arrangement Fee: 1.50% of loan amount.

http://www.lml.co.uk/products.htm
34 - MS01 2 years Tracker Rate Rate - 5.14 (Base minus 0.11%) Tracker for 2 years, reverting to 7.2 (Base +1.95%). APR (Overall cost for comparison) is: 6.9%. 85% Loan To Value, Arrangement Fee - 599. Rental Calculation is 125%@5.75(B+0.5).
Early Repayment Charges - 6% in 2 years

Am I right for £1748.0 saving?

According to TWE's figures:
5.49%interest in 3 yrs of £204000(3x204000x.0549)= £33598.8 and add £330 for survey and £1199 arr. fee Total cost for 3 year=£35127.8 I assume there is mortgage adviser fee on the top of this too.

5.14% for 2 yrs of £204000(2x204000x.0514)=£20971.2add arr. fee of £699, cost for 2 yrs is £21670.2 add 3rd yrs 7.2% (204000x.072=14688)
total cost £35659.2 not good unless you change the mortgage after 2 yrs.no one can predict 2 yrs rates any way.

5.34% for 3 yrs of £204000(3x204000x.0534)=32680.8 add arr. fee of £699, Total cost for 3 yrs is £33379.8,the saving £35127.8-£33379.8=£1748.0

once again recheck don't take my words.i am just a student.

Only downside of these 2 or 3 yrs deal is you got to pay lenders/arrangement and possibly broker fee every time you apply for it .Does it really worth it?can the money saved on interest rate out ways all those fees?.I hope one of the Mortgage advisers can show it in the forum with example and figures.Its so time consuming on research,for that reason may be we should leave it to the dvisers and start trusting them.

Rick62

This thread shows why you should get a good broker that you can trust, spend time giving them all your circumstances (the 'Fact Find') and discussing your preferences (eg term, fixed/tracker etc). It is so easy with part information and ignorance to give bad advice.

I assume the product recommended is from the Abbey, which from the information given is about as good as you get right now. The BM Solutions product at 0.09% over base and £699 fee looks like the best, however there may well be reasons that it is not suitable, in particular it has tougher rental cover requirements than Abbey.

Mr_helpful

Rick is spot on. You have to trust your advisers advice otherwise things break down easily. The advice you are given is only as good as the information you give your adviser and the info given on this thread is in no way antwhere near enought for us to give advice on rates and any reason for one preference over another
KCHOK is in all senses of the word giving advice even though there is an attempt at a disclaimer. He is probably safe as I am sure you know B2L is a largely unregulated topic ( though there are times when it becomes a regulated product) however that also means you dont have much comeback if he puts a spanner in the works for you when you discuss his advice with your adviser
At the end of the day your adviser can only recommend what is available at the time of the recommendation. I am sure he will explain the reasons for his recommendation to you.