BtL Mortgage Exit Fees - query

wiggly

Hiya

Just a quick query (to become more informed) but what is the rough average cost (exit fees) of a landlord leaving a 5yr fixed BtL mortgage early? Doesnt have to be precise and I know it depends on the product but are we talking 000's or 0000's?

Thanks

MarkyMarkD

If asking the question speculatively, it would make a lot more sense to choose a product without exit fees in the first place (and that probably means not fixed rate).

homer_j_3

If you choose a product with early repayment charges, then you are correct in saying that it depends on the specific deal, it also depends on the loan amount. Normally I would expect a 1-5% charge on anything like a fixed rate.

Im not sure what you are trying to speculte but Marky Mark D speaks with wisdom. If you think that you need to exit then you should make this a consideration in choosing the product that you want.

wiggly

no not speculating, we are hoping to buy the house we currently rent, our landlord has said that they have to make sure that the exit fees are covered or its not worth their while selling

but I just haven't a clue what kind of figure they're thinking of so want to be forwarned and for-armed

Rick62

On a 5 year fixed these days probably 4 or 5% of the balance.

wiggly

bloody hell :eek:

john1976_2

what will happen then?
minimum period 3 years expired but now i know in soon future i would like to close my mortgage. it will be not early repayment.

will i loose all money were paid allready? how to do it to save most I can. if it is in the wrong place, pls to move it, it;s my first post here. thnx

MarkyMarkD

If you have a Buy-to-Let mortgage, John, then I'd hope you had a bit more understanding than your question suggests.

If you have a normal residential mortgage on a repayment basis then you will have reduced the capital balance a bit over 3 years. You won't have lost "all money paid already" but most of it will have been interest, not capital.

If you have a normal residential mortgage on an interest only basis, then you will owe the same amount that you borrowed - plus any fees which were added to the loan (rather than paid up-front) and plus any Mortgage Exit Admin Fee.

nrsql

Can be anything.
5% would be very high after first couple of years.
Think I have one at 3% for first 2 years then 2% for next 3.

Who knew?

john1976_2

I just did remortgage *different contract with the same Bank* for another 2 years. they had offered 4% SVR but now I've got Fixed rates for 2 years at 4,48% and no fees. I know i'll pay now 30GBP more monthly but I've got that bad felling that inflation will hit us very strongly in the next 2 years. Hope it was a good deal. If the inflation will go up then I'll keep the same payments for 2 years - then I will see what to do, maybe value of my property will incease if the in flation will go up and the whole economy will be in better condition. who knows the future ?

I've no interst only mortgage- and i'm not going for it - it's a bit risky to me