Switching BTL mortgage

sarah3891

Hi all!

Hope someone can offer me some advice. My current fixed rate interest deal is about to expire and my monthly payements will jump up by £120 pcm due to the current variable rate I have been offered at 6.45% (7.0% APR by comparison apparently!).

My outstanding mortgage is £114,000 on a property currently valued at £150,000, which was bought almost three years ago for £129,000.

Rental income is £560 pcm.

I have been searching BTL mortgages and some have quite decent rates of interest for 2 years (5.19% fixed rate with 3% lending fee etc), but I am very inexperienced at choosing a mortgage and wondered if anyone had any words of wisdom about what I should be looking out for?

My priorities are:
1. To pay off the mortgage over 20 or 25 years at the lowest true cost over time
2. taking into account the above, as small a monthly payment as possible! :-) but I am not looking to make a 'profit' each month, this is a pension investment property so I am focused on the long term
3. security of a fixed monthly payment
4. the least impact of penalty charges for possibly switching mortgages in the future
5. minimum arrangement fee/charge

Possible second point - I currently have a personal loan of 4000 at 7% interest over the next four years, and I would also consider consolidating this
into the mortgage, and then paying what would have been the monthly loan as an overpayment towards my mortgage? Any thoughts?

Has anyone recently switched BTL mortgages or have any advice??
Thanks in advance :-)

Sarah

herbiesjp

There are also lenders that will include free legal fees and valuation to help with the switch - if switching is indeed the best option for you.

I would say to have a word with a good whole of market adviser, as you would need to make sure you find deals you will be eligible for based on the rental income you posted

mickyeo

Hi Sarah,

I have just remortgaged a BTL property and to be honest it's all gone a bit crazy since I started buying them. You either get a good rate with a huge arrangement fee or vice versa. With the current value you will be able to add the Personal Loan to your mortgage (don't let on to the lender thats what your doing though else they will start asking more questions) as you will still have over 20% equity which should get through most lenders criteria.

You need a good IFA, I shouldn't really recommend him because he sacked me but he is the best I have found - James Phipps from Jigsaw Independent Mortgage Specialists in Coventry - He's on the web.
Also for Solicitors if you need them - I have used Beaumont Legal in the past they are the cheapest I have found but very professional, again they are on the web.

Hope this helps.

Michael