Buy to let mortgages

furrycat

Hi, I'm a long time lurker but I think this is my first post.

I have a property that I have been letting for the last 6 months on consent to let. I would like to remortgage to a buy to let interest only mortgage. I don't want to have to remortgage every 2 years to chase rates.

I've seen a BTL mortgage with coventry building society for a variable rate of 3.49% variable for the term. I'm aware this means the rate could go up, however the rate currently is comparable to other deals I've seen on moneyfacts where it is only an initial 2 year rate with a higher reversion rate.

I've read the criteria on the coventry building society website and I meet it.

Am I missing something here? This deal seems to offer me what I'm looking for but should I approach a mortgage broker - to what extent would they be able to advise me on the options available to me?

Thanks for reading

kingstreet

They'll be able to cover the (very many) deals not available direct.

furrycat

Yes, that's why I thought I would have to go to a broker for a BTL however having searched the net and looked at both direct and broker only deals, I think the coventry one looks the best and it happens to be available direct. I was just wondering whether it is far more complicated than it seems to be and I'm missing something important.

For the record I'd say I've got pretty straightforward circs - I've earn £30k, my let property is at approx 62% LTV, I've also got a residential property with my partner with good equity and I have an excellent credit history. I'm 36, I've got no other credit commitments and no dependants.

I suppose I'm reluctant to pay a broker if I will end up getting the same deal I could get myself direct.

kingstreet

The same deal is available direct or via a broker. It's your call if you think having someone do it for you is worth it.

GMS

How do you know if you have searched all lenders brokers have access to?

Why not call a broker and tell them what you have found and see if they can beat it?

Fees can be the decider with BTL's. Often a lower fee higher interest rate can be a better deal.

What's the valuation, required borrowing and monthly rental income?

amnblog

furrycat wrote: »

I was just wondering whether it is far more complicated than it seems to be and I'm missing something important.

If it wasnt more complicated than it seems to be there wouldn't be thousands of mortgage brokers making a living advising people on mortgages.

michaels

Coventry work out required min rental (1.25* Int only) on a slightly higher interest rate than some others (5% compared to 4.5% for The Nottingham as I recall)

kingstreet

The best thing to do is use;-

125% of monthly mortgage interest @ 6%

then you know if you're in, most of the lending market will be open to you.

furrycat

Thanks for the replies, the rent I'm achieving is comfortably more than 125% of mortgage interest at 6% so I should be good to go.