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Re mortgage questions buy to let
want2bmortgage3
Posts: 1,966 Forumite
Default Re mortgage questions
In the process of a re mortgage buy to let with NatWest.
Property was down valued at 180000 estate agent told me it was 190000.
So this has changed my options in terms of rates,ltv etc.
I have the following options:
126k 70% 2.45 tracker £261
126k 70% 2.54 fixed £270
130k 75% 2.49 tracker £273
130k 75% 2.73 fixed £300
135k 75% 2.49 tracker £284
135k 75% 2.73 fixed £311
If I go for 135k I need to increased the 750 rent to 775.
Any thoughts on which option to go for? They are all 2 year deals.
In the process of a re mortgage buy to let with NatWest.
Property was down valued at 180000 estate agent told me it was 190000.
So this has changed my options in terms of rates,ltv etc.
I have the following options:
126k 70% 2.45 tracker £261
126k 70% 2.54 fixed £270
130k 75% 2.49 tracker £273
130k 75% 2.73 fixed £300
135k 75% 2.49 tracker £284
135k 75% 2.73 fixed £311
If I go for 135k I need to increased the 750 rent to 775.
Any thoughts on which option to go for? They are all 2 year deals.
0
Comments
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The rent you can charge i.e. that a tenant is prepared to pay is unrelated to the amount of your mortgage.0
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The rent you can charge i.e. that a tenant is prepared to pay is unrelated to the amount of your mortgage.
Not true because you need to meet the lenders stress testing requirements.
OP you should be looking at the total overall cost over the 2 years imo.I am a Mortgage & Protection Broker
MSE doesn't check my status so you have to take my word for it. Any information posted is for discussion only and should not be seen as advice. I am FCA Registered, registration details available on request.0 -
Well guess the overall cost will be themonthly payment x 24 as they are two year deals. So the cheapest would be 126k on a tracker @ 2.45.0
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Tenant is happy with small increase (25-50 pcm) as I have already asked but I haven't decided whether to do that or not as it means a new AST whereas currently it's on a rolling contract.0
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want2bmortgage3 wrote: »Well guess the overall cost will be themonthly payment x 24 as they are two year deals. So the cheapest would be 126k on a tracker @ 2.45.
Assuming the tracker doesn't move, it may well go down as well. Remember to take account of fees and any ERC's as well. Again it's one a broker can help you with based on overall cost.I am a Mortgage & Protection Broker
MSE doesn't check my status so you have to take my word for it. Any information posted is for discussion only and should not be seen as advice. I am FCA Registered, registration details available on request.0 -
Surely overall cost is just based on the interest rate? Id like to borrow the max 135 really as I need the equity for another purchase, but not sure whether to lncrease the rent so may settle for 130.0
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want2bmortgage3 wrote: »Tenant is happy with small increase (25-50 pcm) as I have already asked
Is tenant really happy? Or simply saying nothing. Meanwhile weighing their options while waiting to see what you propose to implement.0 -
I would go for something that becomes a BOE tracker when the two years finish, if that option is available.
It looks like we are going for BOE = 0.1% soon.
Another person might say, inflation will hit 10%, and they will raise BOE to 8%.
Who are these people? Oh right, it's my split personality.0 -
Not true because you need to meet the lenders stress testing requirements.
I disagree. When the tenant is considering whether to pay the extra per month, they will not be thinking about how much the LL's mortgage costs. They won't care. All they will think about is whether they can afford it and whether they could get what they want for less elsewhere.0 -
The rent the tenant is preparedto pay might be unrelated but the rent he can achieve is certainly related to a mortgage on a BTL.
For a loan of a £130k to fit with all BTL leders you need to be able to achieve a rental income of £940 minimum.I am a Mortgage & Protection Broker
MSE doesn't check my status so you have to take my word for it. Any information posted is for discussion only and should not be seen as advice. I am FCA Registered, registration details available on request.0
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