BTL Mortgage dilemma

mayur177

Hi. My BTL 2 year fixed term mortgage is about to end in March and I plan to convert my property to residential taking on a new mortgage but not until the summer (around August). Do you think lenders will allow a 3-4 month extension of a fixed term rate deal? Want to avoid going onto their variable rate which is really high!

Otherwise do you know any BTL lenders that offer deals with no early repayment charges? Could move to one of these for 4 months until we can move in. Cant move in right away due to family reasons.

Thanks!

Thrugelmir

Mortgage products have a fixed maturity date after which they will default to the specified SVR terms. Remortgaging to another lender will incur considerable cost. For the sake of a few months biting the bullet may well be the most cost effective option.

mayur177

Earliest I can move in is August so just trying to find a workaround.

Are there any BTL lenders that have no Early repayment charges? Paying the product fee will be less than going on the STV with existing lender. Thanks

[Deleted User]

Loan amount?
Property Valuation?
Rental Amount?

Thrugelmir

mayur177 wrote: »

Paying the product fee will be less than going on the STV with existing lender. Thanks

Existing mortgage exit fee, legal fees and valuation fees to be considered. Remortgages are rarely free.

mayur177

Existing loan £250k
Property value £650-700k
Rental income £1600 pm

Thrugelmir

What rate of interest are you currently paying and what will it revert to on the SVR?

[Deleted User]

As far as I can see there are only 2 or 3 BTL lenders on my panel of 55 that have zero ERC.

I doubt they would even entertain an application if you said it was only for a few months and you were going to move in to the property soon. You are free to withhold information from the lender t your own risk but generally if they say it was information that would have affected their lending decision and you were clearly aware of it prior to application then you risk a mortgage fraud label being slapped on you. As a broker I wouldn't take the risk of submitting an application like that.

Even if you wanted to take the risk they will have a minimum of £2k product fee. And if a broker is submitting it then their fees as well (I charge more for BTL cause I hate the amount of paperwork involved and they are complicated)

So their might be lenders out there who will do no ERC but there is a thousand other variables that might throw the case out and without a full factfind its impossible to know if they would do it.


When is the property going to be empty? Cant you just put it on a resi mortgage and leave it empty?

mayur177

1.45% now and 5% after it ends.

AnotherJoe

Why can't you get a residential mortgage in March and "move in" then but you might be away for a fair while until August ?

[Deleted User]

There are a few products that may work. Otherwise something with low etc and no product fees might be better.

If its going to be empty I'd explore just sticking it on residential and leaving it empty.

Sit with a broker and get a feel for your options. BTL is pretty much always complex so quite difficult to go it alone now with them