Mortgage Advice Wanted - Any Brokers Out There ?

carpediemspirit

Hi All,

I wonder if you could help me. 7 years ago I bought a 1 bedroom flat on a 100% Bank of Ireland First Start Mortgage (residential) for £180,000. The rate is the current Bank of Ireland SVR at 4.49%.

I have consent to let on the property and for the last few years have been renting it out for £975 per month against monthly (capital) repayments of £850.00 a month.

Now my question is, I would like to know if there is a better mortgage deal out there. I currently have £160,000 outstanding on the mortgage and I believe the property is now worth £200,000.

Does anyone know of a good lender I can switch to.

My other question following on from this is. Once I have this on a better deal. I would like to buy another property for me to live in. Are there lenders out there who wouldn't mind this rental property in the background ?

Any help would be appreciated.

kingstreet

At 80% LTV you will find very few takers for a BTL remortgage.

The rental income is also a bit short, as a £160,000 mortgage @ 6% x 125% would mean a minimum rent of £1,000 per month.

There are lenders who will ignore a self-financing let property for your next residential purchase, but be careful of the max LTV added by many lenders.

carpediemspirit

So am I better off just selling the flat and putting the money into a new property ?

I envisage getting 40k from the sale and I have 20k in savings.

Any guidance would be appreciated.

amnblog

Why sell if you have held it so far?

carpediemspirit

i am not sure if there are lenders out there who will let me keep it rented and allow me to buy a residential property to live in

amnblog

There are - but there are also a number of factors that make it tricky.

Your interests are best served by consulting a mortgage broker.