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Help Please - BTL
Emma1516
Posts: 41 Forumite
Hi Everyone,
I would really appreciate some help and advice,
My husband and I bought a flat from our local council back in 2004 and paid 39,760, In 2007 we decided to move, the flat was now valued at 115k, we released some equity as a deposit for our new place and kept the flat running as a buy to let, we rented it back to the council for a guaranteed income
We managed to secure a decent btw mortgage for the first couple of years but after that, house prices dropped and we did not have enough LTV to go onto a new product and so since 2009 we have been stuck on Chelseas SVR, we have now decided we can not bury our head in the sand any longer and either need to sell or get a better detail as the svr is around 5.5% and so we are paying a ridiculous amount every month !
I spoke to chelsea and they have said we can switch over to a fixed deal of 3.74% which would be brilliant and significantly reduce the mortgage payments, However we have had a revaluation carried out and it has come back as only being worth 95k !! As our mortgage is currently 85k we need to find 14k to get it down to the 75% LTV.
Looking at our finances we can come up with half of that amount by selling our caravan and releasing some dividends from my husbands company, and were thinking of getting a loan for the rest but we don't really know the implications of this ?
Thoughts, opinions, advice would be greatly appreciated, apologies for the long post
I would really appreciate some help and advice,
My husband and I bought a flat from our local council back in 2004 and paid 39,760, In 2007 we decided to move, the flat was now valued at 115k, we released some equity as a deposit for our new place and kept the flat running as a buy to let, we rented it back to the council for a guaranteed income
We managed to secure a decent btw mortgage for the first couple of years but after that, house prices dropped and we did not have enough LTV to go onto a new product and so since 2009 we have been stuck on Chelseas SVR, we have now decided we can not bury our head in the sand any longer and either need to sell or get a better detail as the svr is around 5.5% and so we are paying a ridiculous amount every month !
I spoke to chelsea and they have said we can switch over to a fixed deal of 3.74% which would be brilliant and significantly reduce the mortgage payments, However we have had a revaluation carried out and it has come back as only being worth 95k !! As our mortgage is currently 85k we need to find 14k to get it down to the 75% LTV.
Looking at our finances we can come up with half of that amount by selling our caravan and releasing some dividends from my husbands company, and were thinking of getting a loan for the rest but we don't really know the implications of this ?
Thoughts, opinions, advice would be greatly appreciated, apologies for the long post
0
Comments
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Surely the loan will be more expensive that your current mortgagelbm 11/06/12 dept total 11499.470
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Not sure if I am looking at it correcting but currently we are paying £402 on chelseas svr for an £85k buy to let mortgage, I was thinking if we could pay £6500 off out of our own money and then get a loan for 7500 over 5 years at a rate of 4.7% our outgoings would then be mortgage payment approx £220 and loan £140 which is £40 less per month than we are paying now and our mortgage will have been knocked down from £85 k to £71,2500
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Do you KNOW you can get a loan for that rate?
You'll also be losing about £20 a month in interest on the £6.5k.0 -
Well I think so its a pre approved rate from my bank Im not 100% sure
Would we be best to just leave the mortgage on the SVR ?0 -
Bump please 0
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Is this mortgage on a repayment basis?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
It all depends on your view on interest rates, what will happen to the mortgage in 5 years time, whether you will need those savings in the future, the tax position you are in regarding the interest on the mortgage.....I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Bump please0
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If you aren't making any money from the BTL ,and your CGT relief is reducing the longer you keep it,why not sell and use the gain to pay down the debt on your home ?0
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