Mortgage product expiry, what is the common practice among other landlords?

BarleyGB

I have 2 recently purchased BTL’s, the first property is approaching the product feature end date (Santander 2 year fixed)

Q1 - Assuming its common practice to look for an alternative product, do you (other landlords with mortgages) typically re-mortgage every 2-5 years when to take advantage the best rates available or are you content to remain with the existing lender even if the available rate is not the most competitive

Q2 – How much does the rate differential/interest saving, between existing and alternate lender affect your decision? e.g. if existing lender only offered 2.99 fixed but an alternate lender offered 2.49 fixed (saving £840 a year) would you go through the effort and additional cost? of re-mortgaging?

Q3 – given my 2nd property (on Natwest 2 year Tracker) will expire in another 12 months, aside from the new underwriting, are there any considerations re continually re-mortgaging like this?

Q4 – Can anyone recommend a good (Contractor/Limited Company friendly) broker that doesn’t charge a broker fee?

Just looking for general advise and what others typically do? Appreciate there are other factors to consider e.g. product booking fee, product length, tracker vs fixed and modelling the total cost/benefit for any decision?

Thank you

AnotherJoe

Just out of interest, whats the relevance of BTL?
The same factors and considerations apply with a residential mortgage.
And you've listed them all AFAICS, you have to do the maths and make your own guess at interest rates in the future.

BarleyGB

Agreed that there is a relevance for residential property but I was looking for specific landlord advice & behaviours.

Relevance or BTL would be:

Multiple properties / frequency of remortage activity & credit searches
Lenders treat BTL applications differently
Costs/benefits potentially a more transparent condiseration
Tax considerations

Cornucopia

I've kept the same 2 lenders on the basis that selecting a new deal with an existing lender is probably reasonably competitive, and it avoids the need for a new Survey (which may be a problem with tenants in-situ).

Having already selected locations and property types with a strong positive yield, the exact percentage on the Interest-only mortgages does not make a vast difference. I am thinking of paying-off some of the balance as my savings return elsewhere dwindles and if/when it ceases to be fully tax-deductible.

AnotherJoe

BarleyGB wrote: »

Agreed that there is a relevance for residential property but I was looking for specific landlord advice & behaviours.

Relevance or BTL would be:

Multiple properties / frequency of remortage activity & credit searches
Lenders treat BTL applications differently
Costs/benefits potentially a more transparent condiseration
Tax considerations

OK that makes sense