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Remortage on buy to let question

Konisberg
Konisberg Posts: 85 Forumite
in Mortgages & endowments
Hi

When my buy to let fixed rate ends the rental will now not be 125% of my interest only mortgage due to a combination of higher interest and letting the place go a little cheaper rather that having it unlet. Without going into figures etc, does anyone see this being a major problem for my current lender (The Chelsea) considering I will have a paying tenant on an AST in-situ. I reckon the difference will be about £100. Having said that the rental will cover the interest only mortgage and i have factored another .25% rise.

thoughts anyone?

thanks
«13

Comments

  • AndyWallace
    AndyWallace Posts: 253 Forumite
    Are you going to stay with them? Or looking to remortgage to another lender?

    Andy.
  • Konisberg
    Konisberg Posts: 85 Forumite
    I'm happy to go elsewhere but I'm just curious as to how they would view the shortfall now. Having said that, they agreed the initial mortgage based on what an EA told me the rental value of the property was so perhaps they will be flexible?
  • JoeK_3
    JoeK_3 Posts: 1,374 Forumite
    Konisberg wrote: »
    I'm happy to go elsewhere but I'm just curious as to how they would view the shortfall now. Having said that, they agreed the initial mortgage based on what an EA told me the rental value of the property was so perhaps they will be flexible?

    The 125% ratio is ok!

    You should be able to remortgage but do get a good fixed rate as things are starting to get tight.

    See an independent whole of market mortgage broker.

    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    You can get buy to let remortgages now for properties where the rent doesnt even cover the mortgage payments, or properies where the rent just about covers 100% of the mortgage payments so you have nothing to worry about
    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.
  • JoeK_3
    JoeK_3 Posts: 1,374 Forumite
    Are you following me MortgageMamma?

    LOL, LOL

    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    JoeK wrote: »
    Are you following me MortgageMamma?

    LOL, LOL

    JoeK


    Yes I am JoeK, do you like it? ;)
    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.
  • JoeK_3
    JoeK_3 Posts: 1,374 Forumite
    MortgageMamma wrote: »
    Yes I am JoeK, do you like it? ;)

    I luv it! I can smell your perfum from here. ;-))

    LOL
    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    JoeK wrote: »
    I luv it! I can smell your perfum from here. ;-))

    LOL
    JoeK

    What 15 miles away? I must have overdone it, I wondered why everyones eyes was watering in asda earlier :confused:

    looks like its just me and you in here this evening:think:
    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.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    MortgageMamma wrote: »
    What 15 miles away? I must have overdone it, I wondered why everyones eyes was watering in asda earlier :confused:

    looks like its just me and you in here this evening:think:

    You finished your chicken korma then? :rotfl:
    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.
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    herbiesjp wrote: »
    You finished your chicken korma then? :rotfl:


    I was nearly _pale_ korma doesnt mix well with red wine !! BUt I guess anythings better than my pathetic attempts to cook

    Just catching up on a few missed episodes of backyardigans
    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.
This discussion has been closed.
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