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

mlz1413

hi sarah,

i haven't looked at mortgages recently so i'm not sure what rates are on offer, but i would recommend looking at the Chelsea BS, in my experience this company have been very good. Also last time i checked the Coventry BS had very competitive deals on offer.

Xstyle

Hi Sarah,
see my thread: http://forums.moneysavingexpert.com/showthread.html?t=583262

There are 3 rates listed there that seem quite competitive for Buy To Lets.

I have an IFA, and more than happy to recommend her to you.
She gets her fees via the mortgage co on completion, so you never pay her anything. Can PM you the details of u wish??

Xstyle

sarah3891

Thanks Xstyle that would be great if you could PM me?

Mlz 1413 i'll check those rates out too!! :-)

Thank you both

Xstyle

sarah3891 wrote: »

Thanks Xstyle that would be great if you could PM me?

Mlz 1413 i'll check those rates out too!! :-)

Thank you both

Sarah,
I have displayed the IFA's details in my thread, as someone else asked for them too...

check the link above.


Cheers,
Sid

edit: will provide here for ease of access:


Gwen Stevens
The Mortgage Advice Co.
T: 01753 664488
M: 07900498511

Doesn't charge a fee, gets her commission from the lender
Tell her that SID recommended!

:beer: