Remortgage advice.

simpleguy_blr

Hi,

I am looking for some advice on getting a BTL mortgage, apologies for the long post.

I let out my property which is mortgaged with Nationwide a year ago as we had to move house due to school, initially the plan was to let temporarily and then move back after a year or two, once my DD is confident to travel using public transport, but then now we feel that it will be good for her to commute from where we live now, which is very close to school.

Nationwide has given us consent to let, I am on their SVR mortgage which is 3.99 % plus 1% due to buy to let so it sums up to 4.99% for a repayment mortgage.

My situation changed last year, I started my own company and started working as a freelancer, Nationwide does not do BTL so my options are to look outside bearing in mind that I am self employed now.

I did feel like selling the property but later decided against it as I worry that I might not be able to get back into the property ladder again.

Wondering if in my situation would it be a good idea to remortgage.
Would going for a fixed repayment BTL mortgage be a good idea? Or Tracker in the current market situation, I have in the past always tried to go fixed as I like to know my outgoing expense so that I can plan accordingly.

My existing mortgage is repayment one which runs for 12 years, outstanding balance on the mortgage is about £110,000 and the property is worth about £220,000

Thanks

kingstreet

Talking products seems a bit premature.

First questions will surely be, can I remortgage to a BTL with less than twelve months trading history? Is my rental income sufficient to meet a lender's requirements?

I would suggest speaking to an independent broker and establishing your lender options, then establishing what rate options you will actually have open to you from them.

simpleguy_blr

Thanks kingstreet, I am in the process of finding out my remortgage options with my current trading history and rental income, awaiting quotes, initial communication looks promising as they are contractor friendly brokers.

I will post the quote details once I hear back.

Thank you for taking time to read through my long post.

simpleguy_blr

Heard back from the independant broker.

Two options provided for Buy to Let mortgages: Broker Fee £799.00 applicable.
20 year repayment fixed for two years at 3.79%, monthly repayment £624.72 reverting to SVR 5.35% - Arrangement Fee £0
20 year interest only fixed for two years at 2.59%, monthly repayment £226.63 reverting to SVR 5.35% - Arrangement Fee £1,999.00
Current mortgage detail: 12 years repayment at 4.99% monthly repayment £995.26.

Rental Income is £1075

If I decide to change I will have to remortgage again after 2 years, makes me think I might be better of staying with Nationwide and try again after a couple of years as I will by then have 3 years of trading history and might be able to find a better deal.