Looking for Fixed Rate BtL Mortgage

nmd001

Hi all,

Need some help regarding a buy to let mortgage.

Looking to borrow 86k against a property valued at 105k at a fixed rate for as long as possible and based on a 25year term.

Property is currently being let (current lender has granted consent to let) and the fixed rate is up in the next few months, however, need some funds quickly to enable payment of deposit for new buy to let property which we will settle on 7th december, hence the reason for the remortgage.

The property is a ground floor flat in a block of four (known locally in the west of scotland as a "four in a block") ex local authority and is being rented out at £525 per month, the current mortgage capital & interest repayments are £545 and the mortgage balance is £78k

I am self employed with less than one years accounts and my wife is employed.

We have had the property surveyed and are part way through an application with the mortgage works via a broker called mortgages for business which has thrown up its own problems as follows:

The surveyor we used is on the list /panel of approved surveyors or panel for The Mortgage Works but the broker has informed us that the surveyor is not on the brokers list / panel and say we need to get another survey carried out which isn't a problem but I am a bit reluctant to get another mortgage and further disturb my tenant.

I then contacted The Mortgage Works and started the application deirect with them but had to stop part way through as they will only lend up to 75% on ex local authority properties. Something that the broker has not yet informed me of, they have informed me that the application is agreed in pricipal and all that is outstanding is a survey from someone on their list / panel of surveyors.

Any advice on alternate products greatly appreciated, preferably the longer term then the better.

The only other option available to us is to let the current mortgage run its course and have no ERCs which are currently £700 and get a personal loan which I could repay monthly and then settle after 6 months.

This raises another question - does anyone know if their is a time limit / expiry on a survey, i.e. could i use the survey i got done last month in march next year?

socrates

After placing a similar post on here and speaking to several people - try Scottish Widows BTL - you can fix it for 5 years.

Their website is easy to navigate and you can find out if you qualify in minutes.

Good luck!

Jonbvn

Three issues that a lot of BTL lenders will be reticent about:

1. LTV > 75%.
2. Ex Local Authority.
3. Loan period 25 years.

Based on this points, I think you may struggle to get a competitive rate, if any.

herbiesjp

Plenty lenders will look at the scenario for you, assuming you have no adverse credit history and you find the ones that are ok with ex-local authority properties. Rental income seems fine for a few lenders

silvercar

A broker should find the best deal for you, but if you want ideas, NatWest happily lend on ex-LA properties and do 85% LTV. I don't know why 25 years would be an issue for lenders as that seems pretty standard. If it is a problem then go interest only over 20 years. Most BTLs are interest only for tax reasons and because you presumably could sell up at some point in the future rather than live there in your retirement.

nmd001

We bought the flat in 2001 and lived in it till August 2006, when we bought our new house if we had sold the flat we would have been left with about £3k in our hands so we decided to keep it as a long term investment.The flat is in an excellent condition and in an excellent area, our plan is to eventually retire into the flat in 25 to 30 years.We don't have any form of pension, this flat is our pension.On this particular property we do not want to go interest only, financially it is not a problem paying the extra to reduce the term to 20yrs.Will look at the other lenders you guys have mentioned and reducing the term if this can be managed for the rental income.Thanks again.