Remortgage Buy-To-Let Options

Xstyle

My IFA has provided these figures for 131k mortgage interest only, over 23 years.

1. Alliance & Leicester 2 year tracker 5.74% .
£350 valuation fee, £999 arrangement fee added to loan. You pay legal fees (c. £400). = £631 p/m (with £750 fees to pay upfront, which works out to be extra £31 p/m over 24 months = £662 p/m)
(Total fees = £1750)

2. C & G 2 year tracker 5.99%.
Free valuation, £99 booking fee. £799 arrangement fee added to loan. You pay legals (c. £400). = £658 p/m
(with £500 fees to pay upfront, which works out to be extra £21 = £679 p/m)
(Total Fees = £1300)

3. Bristol & West 6.15% 3 year tracker until 31/08/2010.
Free valuation, free legal fees. £399 arrangement fee added to loan. £195 fee deducted from loan advance. = £673 p/m
(Total Fees = £399 - £195 = £204??)


The added benefit with #3 Bristol & West, is that it is a year longer that the other 2 options, which means (only) 1 more year of fee free mortgage?? ... but it has the highest interest rate...

A&L is slightly cheaper over the 2 years ... but has more upfront costs... which I'm not really fussed about... whichever one gets me the best outcome over the long term, during tie-in periods. Will remortgage always...


Which mortgage to go for??? #1 or #3?


p.s.
Come across Beaumont Legal, via Web-Conveyancing site, that charges just £180 + vat for conbeyancing!!! (plus the other minor disimbursements)
http://www.web-conveyancing.co.uk/remortgage_quote.asp
http://www.beaumont-legal.co.uk/contact/
(cheaper via first link)

Xstyle

any input pls?

mandm65

hi mate
not the kind of input u were expecting but can u tell let me have the contact details of ur IFA cos i am also looking for BTL re-mortgage and the product given to me by my IFA is not as good as the above
cheers

herbiesjp

Are you sure you fit the rental criteria of all 3 schemes?

What is the property value?

mel19632

Hi, just to add my tuppence - might interested, might not!

Have just got a mortgage offer of 5.19% fixed for two years with Mortgage Express (part of Bradford and Bingley).

Fees are £419 (valuation - but depends on your property value)
Solicitors (brokers own) £225
Arrangement fee 2.5% (ouch, but i think the deal is worth it!!)
Broker fee £295

For us, we have a £164k mortgage, total repayments of £727 per month.

mel19632

Sorry, also just to add, our rental needed to be £800, and our property was valued at £195k

Thanks

Xstyle

mandm65 wrote: »

hi mate
not the kind of input u were expecting but can u tell let me have the contact details of ur IFA cos i am also looking for BTL re-mortgage and the product given to me by my IFA is not as good as the above
cheers

Sure... The Mortgage Advice Co. Gwen Stephens 07900498511 or 01753 664488
Doesn't charge a fee, gets her commission from the lender
Tell her that SID recommended!

herbiesjp wrote: »

Are you sure you fit the rental criteria of all 3 schemes?
What is the property value?

The property is valued at around £215k to £220k.
Rent is £800 pm

mandm65

my offer


Standard life = (variable rate - 1.22) 7.69% - 1.22 = 6.47%, discounted 3 for years.

Arrangement fee - £699
valuation Fee £0
Solicitors Fee £0

Broker fee £0

Worth it??

mandm65

Xstyle wrote: »

Sure... The Mortgage Advice Co. Gwen Stephens 07900498511.
Doesn't charge a fee, gets her commission from the lender
Tell her that SID recommended!

Thanks mate, will do, btw do u have her work no?

Xstyle

I'm just thinking that if there is a rate increase, would it have more of an effect on the higher rate deal that the lower rate one?

...due to the higher rate one having more debt overall because of the higher interest rate over the 2 years?

[does that make sense??]

i.e. from 6.15% of interest to say 6.4%, of £131k
would be more than the increase of 5.99% (from 5.74%) of £131k

I might just be confusing the situation here... ooops!?

Xstyle

I did some calculations on a spreadhseet, breaking down costs for years 1, 2, 3 for all the options... so can be comparable on an equal footing.... prorated.

B&W wins.
Esp in the shorter term, and is on a par in year 3 with A&L ... but in real terms B&W would win again, as the arrangement fees to rearrange again after year 2 for A&L could be higher... also the fact that the A&L may also have an exit fee, which is not calculated in.

Take a look, and let me know what you think...






I could've just listened to my IFA and gone with B&W in the 1st place ! LOL
...but I like to work things out...