BTL virgin! Is this a good deal?

Paulosomerset

Hi all

About to take out my first ever btl mortgage

69% ltv - 140% rent coverage - so all very tidy

I'm looking at 3.29% fixed 5 years - reverts to less than 5. Total fees around 2.5k.

Does this seem keen to you hardened experts?

Thanks

Paulo

kingstreet

I've just submitted a 2.99% fixed for 5 years upto 60% LTV with £1,995 fee, val fee was £214 on my case (£230k valuation) and £750 cashback to defray legal costs.

There are lower rates with higher fees, if your mortgage amount warrants that.

AnotherJoe

On the face of it rate looks good but that's a massive arrangement fee so without knowing how the sums involved compare with profit it's hard to say. it could take 2 years or 2 months to clear that sum..

Paulosomerset

It's a 280k mort on 390k

So higher fees don't pay when I look at 5 year p&l including income tax