The benefit of IFA's

IveSeenTheLight

In the past, I have often found that I have been able to find a better deal or at least identify which option is the better deal, however my IFA has been able to find a remortgage deal for BTL's which appears to be unimaginable.

I've tried to check online, but this is not an offer available to Joe Public, therefore I'm guessing this is a IFA only offer.

Anyway, here's the offer.

75% LTV
2 year fix at 3.99%
Free legal and survey fees
and most amazingly, NO ARRANGEMENT FEE!! :eek:

He can get a lower fee, but not without heft arrangement fees, so all in this is a fantastic opportunity.

Has anyone else found recently the benefit of going through an IFA?
What's peoples perceptions on the longer term and wider mortgage market?

Graham_Devon

Will your tenants get a better deal too? .

IveSeenTheLight

Graham_Devon wrote: »

Will your tenants get a better deal too? .

They most certainly will get the opportunity to remain on the same rate as they had agreed to.

I have one tenant about to start their 7th year, still paying the same rate as in 2007

I have one tenant who have been in for two years come March and want to extend, which I have agreed to do so without increasing their rent.

The last property changed tenancy in the summer, so they have an agreed rate till next summer. Should they wish to stay on, I will not raise their rents.

So in essence, they are getting fantastic deals from myself as a landlord and by not raising rents during tenancies, I am in a very small way contributing to helping keep rents lower.

In between tenancies, I do raise to just below market rate, which has helped me to only have 16 days void, over three properties over the last 7 years.

Time for a G&T I think :beer:

IveSeenTheLight

Graham_Devon wrote: »

Will your tenants get a better deal too? .

To clarify further and to answer your specific question, you have to consider what rate I am moving from.

The ad-hoc rate is 4.99%, but I was on 3.79% during the term.
This rate is fixed at 3.99% so essentially, the mortgage monthly costs are increasing.

Would you therefore advocate that I should be increasing the rents because of this increased mortgage costs?
This is in essence an increase of 5.27% of costs.

Do you therefore agree, my tenants are getting a good deal to remain on their monthly rent as opposed to me increasing them

Thrugelmir

Many lenders only "sell" BTL mortgages through intermederaries.

What's the IFA's fee?

What's the follow on SVR rate?

Graham_Devon

IveSeenTheLight wrote: »

Time for a G&T I think :beer:

I'll buy it for you! It's genuinely nice to hear of a landlord doing what you ave done. Unfortunately the renting board is full of differing stories!

michaels

I got an svr at 3.49% with 750 fees but free legals and valuation, on a new btl purchase at 65% ltv, this was direct with the lender. I was quite limited for choice as I wanted something with no lock ins and minimal fees. This was in August but I think the same deal is still available. I spoke to a broker but they couldn't do any better given the restrictions.

Graham_Devon

michaels wrote: »

I got an svr at 3.49% with 750 fees but free legals and valuation, on a new btl purchase at 65% ltv, this was direct with the lender. I was quite limited for choice as I wanted something with no lock ins and minimal fees. This was in August but I think the same deal is still available. I spoke to a broker but they couldn't do any better given the restrictions.

You a BTL landlord now?

Surprising turn around from a year or so ago!

michaels

Graham_Devon wrote: »

You a BTL landlord now?

Surprising turn around from a year or so ago!

I think I have admitted before to having a vested interest in increasing house prices which I agree with you would only apply for a main residence if I had a poor LTV or was looking to downsize.

I have always been extremely prudent financially so it has never been an issue for me to suffer a period of reduced income.

I could also horrify you and admit that the btl is actually a sideline with returns that are only decent due to the current interest rate environment and that the opportunity for capital appreciation is a partial driver to my purchase but I fear you have a slight negative reaction to non-professional landlords and those holding multiple properties to benefit from HPI that results from constrained supply so I won't.

IveSeenTheLight

michaels wrote: »

I got an svr at 3.49% with 750 fees but free legals and valuation, on a new btl purchase at 65% ltv, this was direct with the lender. I was quite limited for choice as I wanted something with no lock ins and minimal fees. This was in August but I think the same deal is still available. I spoke to a broker but they couldn't do any better given the restrictions.

This must be a tracker, whilst mine is fixed
Also, depending on the loan amount, the £750 arrangement fee could affect the net rate.

Virgin money offer a 2 year tracker at 3.79%, with a £995 fee, but also £750 cashback
http://bank.virginmoney.com/mortgages/find/Find-A-Mortgage/2yr_everyday_tracker_cashback_5qw5 which is not bad all considering.

kingstreet

Smaller mortgages and shorter-term products may best suit a no/low fee, higher rate product, while longer term deal and bigger mortgages will suit a better rate as you have a longer time to recoup the cost of any fees.

The BTL market is still broker-centred with many lenders not marketing direct to the borrower, so you may find better rates via a whole market broker, but this will depend on the case circumstances as usual.

Presumably, the above is a remortgage, where free valuation and free legals are still widespread.