Best BTL mortgage for low LTV

Rimmer

Hello

I have moved in with my girlfriend and am lucky enough to be able to keep my old flat and so have turned it into a BTL. I will soon need to change it into a BTL mortgage.

There is about £95k left to pay. Valued at about £230k. £30k deposit. 15 years left.

I'm with Nationwide who will let the term expire in September and then the rate will be 4%. Considering there is a low loan-to-value ratio, am I likely to get a better deal elsewhere? I've tried looking online, but haven't got very far.

Thanks

Rimmer

Thrugelmir

Once under 60% LTV there's no commercial logic in offering a low interest rate. As the profit to be made on the loan is starting to diminish. From a lenders perspective more profitable to lend to a higher LTV at a higher rate.

holly_hobby

Rimmer wrote: »

Hello

I have moved in with my girlfriend and am lucky enough to be able to keep my old flat and so have turned it into a BTL. I will soon need to change it into a BTL mortgage.

There is about £95k left to pay. Valued at about £230k. £30k deposit. 15 years left.

I'm with Nationwide who will let the term expire in September and then the rate will be 4%. Considering there is a low loan-to-value ratio, am I likely to get a better deal elsewhere? I've tried looking online, but haven't got very far.

Thanks

Rimmer

Lenders rates are generally dictated by exposure.

A mge of 95k on 230k gives you a 41% ltv (well a tad over at 41.3%) - which wil permit you to easily beat the 4% rate NWide are offering (ie just one lender in the market is offering well below 3% on this LTV).

How much you end up beating it by, will all depend upon if you want to absorb remortgage fees or seek a fee free BTL remortgage deal, and of course rental income and any earned income requirement being sufficient - (rental income - take 125% of mge interest at 6% for a ball park guide).

Speak to a whle of market mge broker, whom will facilitate your access to the whole market (inc intermediary only deals) - they'll be choices for you ....

Don't forget any remortgage (which are technically refinancing) costs, are a permitted deduction - so if you elect to pay the fees to drive down the payrate, ensure you keep a record of them for HMRC purposes.

Hope this helps .... good luck

Holly x