BTL mortgage - broker needed?

littlemissy29

Hi all.

I've a BTL that needs to be remortgaged. Mortgage currently with The Mortgage Business - they are offering no new business and the current SVR is 4.95. It was set up for me by a broker about 4/5 years ago.

I've recently arranged a mortgage (first direct)for my own home without a broker and found it relatively easy and stress free.

Can anyone advise if it will be much harder to go it alone with a BTL, or should I expect it to be pretty easy too. I know not all lenders offer BTL including FD.

thanks.

LM29.

GMS

Brokers have access to more BTL products than the public.

How much do you need to borrow? What is the property worth? Monthly rent? What is your income?

littlemissy29

Hi GMS -

Property is worth about £380k
Mortgage will be only about £65k in comparison.

Rental income £1500pcm.

Thinking of going interest *only* too as that will allow me to make bigger overpayments on the new mortgage (our home)

LM29.

GMS

Interest free would be great but I assume you mean interest only!

What rate does your current mortgage revert to?

With a loan to value like this, assuming good credit etc you should have the pick of rates.

littlemissy29

Yes - interest only.. If only it was free..!
Current mortgage has reverted to 4.95

Had a look of a comparison site, and saw some much more reasonable rates. Given the figures, do you think it would be simple enough for someone to arrange without a broker?

Thanks again

LM29.

GMS

What type of property is it?

You should be able to find a lender yourself but you wouldn't know if it is the best available as you couldn't compare broker products.

Look out for fees. Some can be huge.

With a relatively low mortgage like you are looking at there may be better deals without fees, or those with smaller fees. No point in paying a huge arrangement fee to get a rate which won't justify it.

littlemissy29

3 bed house in North London- zone 3.

Thanks for your advice - v. Useful - I'll go away and do some sums.

LM29

tunnel

Have a look at Virgin Money, I've done all my own re-mortgages and they seem to be one of the most competitive lenders. I did try a broker once and got stung(no disrespect to the peeps on here who do give some very sound advice but once bitten twice shy in my case)

ACG

Be careful with virgin money, one thing i found recently was at the end of the term they do not allow you to switch products (on BTLs only). I spoke to 3 members of staff there who all confirmed it.... so once the deal finishes your on the SVR and short of moving lenders there is nothing you can do about it.

tunnel

ACG wrote: »

Be careful with virgin money, one thing i found recently was at the end of the term they do not allow you to switch products (on BTLs only). I spoke to 3 members of staff there who all confirmed it.... so once the deal finishes your on the SVR and short of moving lenders there is nothing you can do about it.

Thanks for the info, I have 4 mortgages with virgin, I'm not too worried as I tied in on 5yr fixes with them on very competitive rates indeed, hopefully they may change their lending policy by then.