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The cost of a buy to let mortgage.

Hi it is my first post, hope someone can help, I am letting my house have been told I need to change the mortgage 30000 owing 2 years 2 months left on the current mortgage, it is on a fixed rate, want to pay it off asap.... am worried now about how much a re mortgage will cost? Thanks in advance! Tubby.

Comments

  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Why do you have to change? Do you have a residential mortgage without consent to let?

    2 years 2 months on term or current deal?

    Remortgage can be tailored to your needs. No point in paying huge arrangement fees for a small mortgage as the lower rate will not save the fees in payments.

    You may be better with a higher interest rate but no arrangement fees.

    Remortgage legal fees will be around £500. Valuation fees may also apply.

    Have a chat with a broker. Many Buy to Lets are available through brokers only
    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.
  • Senior_Paper_Monitor
    Senior_Paper_Monitor Posts: 2,918 Forumite
    Part of the Furniture Combo Breaker
    edited 24 June 2012 at 10:45AM
    Value of property ?

    Presumably 2 years 2 months to end of deal term rather than mortagge term and ERCs applying (how much) ?

    What are your current accommodation arrangements ?

    Who is lender ? How old is mortgage ?

    Who told you ?

    What insurance do you have on property ?



    and I forgot - what's the rental income ?
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Gosh that was quick. I guess £500 is ok I thought I may get stung for a few thousand! Thanks again.
  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    The point is though who told you you neede to change? If you are on a deal already you will incur penalties, plus btl rates are higher with generally high arrangement fees, who are you with? Could you get consent to let?
    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.
  • Hi I was making a general enquiry over the phone with the mortgage company and was told then. I realise I need to get different house insurance but I thought changing the whole mortgage was OTT. Ah,well.
  • I will re phone them and ask if I can get consent to let. Worth a go I reckon.
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