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Interest Rates
laus89
Posts: 10 Forumite
Hi, I'm in the process of remortgaging my property - changing to a Buy to Let and releasing equity so my husband and I can buy a property together.
The property is currently worth around £215k and I have £34k outstanding on the mortgage. I want to borrow a total of £114k.
I do have defaults on my credit file from 4 years ago but all debts have since been fully settled. I do not have any debts / finance agreements etc. currently.
Today I have heard back from one broker to say that the lowest interest rate they can find is 5.78% which would make my monthly payments £549 (interest only).
Now, I know that due to the marks on my credit report that the interest rates will be higher than normal but has anybody had a similar experience where the interest rates are extremely high??
I am speaking to another broker who specialises in adverse credit mortgages but I'm just curious to know if this is the norm.
Thanks
The property is currently worth around £215k and I have £34k outstanding on the mortgage. I want to borrow a total of £114k.
I do have defaults on my credit file from 4 years ago but all debts have since been fully settled. I do not have any debts / finance agreements etc. currently.
Today I have heard back from one broker to say that the lowest interest rate they can find is 5.78% which would make my monthly payments £549 (interest only).
Now, I know that due to the marks on my credit report that the interest rates will be higher than normal but has anybody had a similar experience where the interest rates are extremely high??
I am speaking to another broker who specialises in adverse credit mortgages but I'm just curious to know if this is the norm.
Thanks
0
Comments
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Probably best to post this in the mortgage forum2006 LBM £28,000+ in debt.
2021 mortgage and debt free, working part time and living the dream4 -
There is a lot of pressure on interest rates now, upward pressure, and BTL is potentially very risky, that is probably the reason.laus89 said:Hi, I'm in the process of remortgaging my property - changing to a Buy to Let and releasing equity so my husband and I can buy a property together.
The property is currently worth around £215k and I have £34k outstanding on the mortgage. I want to borrow a total of £114k.
I do have defaults on my credit file from 4 years ago but all debts have since been fully settled. I do not have any debts / finance agreements etc. currently.
Today I have heard back from one broker to say that the lowest interest rate they can find is 5.78% which would make my monthly payments £549 (interest only).
Now, I know that due to the marks on my credit report that the interest rates will be higher than normal but has anybody had a similar experience where the interest rates are extremely high??
I am speaking to another broker who specialises in adverse credit mortgages but I'm just curious to know if this is the norm.
Thanks1 -
Are you borrowing money to fund the purchase on the new property as well?1
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Yes I am borrowing money to fund the purchase of the new property.0
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Thank you, I'm a newbie but I'll see what I can do 🤭jonnydeppiwish! said:Probably best to post this in the mortgage forum1 -
laus89 said:
Thank you, I'm a newbie but I'll see what I can do 🤭jonnydeppiwish! said:Probably best to post this in the mortgage forumIt's here.I think Thrugelmir was asking if you'd also be taking out a mortgage on the new property- or just the BTL?If not, why not raise the money on a residential mortgage.Might get better raes.1 -
Yes we'd be taking out a mortgage on the new property. I have posted this question on the mortgage section, thank you 😊canaldumidi said:laus89 said:
Thank you, I'm a newbie but I'll see what I can do 🤭jonnydeppiwish! said:Probably best to post this in the mortgage forumIt's here.I think Thrugelmir was asking if you'd also be taking out a mortgage on the new property- or just the BTL?If not, why not raise the money on a residential mortgage.Might get better raes.1 -
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Yes its that one 😊HotPantsCruiser said:0 -
Rates are higher with BTL mortgages
Are you getting a 5 year fix ?0
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