wow, mortgage payment (BTL) gone from £1100 to £2700 pcm (fixed rate ended). I have some options...

snickpan

BTL mortgage £345K this month reverted to 9.58%.  Can pay off £200K leaving BTL mortgage of £145K, monthly payments approx £1275 (I'll lose £400 a month return on savings)
I've put a house up for sale (in these troubles times, fingers crossed) which could pay off the rest of the rest of the BTL this year - which prohibits me from arranging a new BTL mortgage because of early termination fees.  Seems like I should stick with the massive 9.58% until I can pay the rest of it off.
Or arrange a 2 year 3.64% mortgage with a £1500 termination fee, a £3k arrangement fee, and monthly payments £737.
Sorry if I've kept it too brief, I'm verging on panic, can anyone see an obvious path?  I realise the house sale is a big variable time-wise

silvercar

The obvious path would be to see a mortgage broker. Not all deals would have high ERCs.

That rate seems very high, even for a BTL. What lender has a 9.58 reversion rate???

housebuyer143

snickpan said:

BTL mortgage £345K this month reverted to 9.58%.  Can pay off £200K leaving BTL mortgage of £145K, monthly payments approx £1275 (I'll lose £400 a month return on savings)
I've put a house up for sale (in these troubles times, fingers crossed) which could pay off the rest of the rest of the BTL this year - which prohibits me from arranging a new BTL mortgage because of early termination fees.  Seems like I should stick with the massive 9.58% until I can pay the rest of it off.
Or arrange a 2 year 3.64% mortgage with a £1500 termination fee, a £3k arrangement fee, and monthly payments £737.
Sorry if I've kept it too brief, I'm verging on panic, can anyone see an obvious path?  I realise the house sale is a big variable time-wise

Why don't you arrange an ERC free tracker? That way you can pay lower now and then leave when you sell?

snickpan

Silvercar:  https://www.kentrelianceforintermediaries.co.uk/buy-to-let/mortgages/products/02247-kbtl2211. I'm currently with Kent Rel, so may avoid an arrangement fee, but will look at other companies for ERCs. 
I've spoken to my financial advisor, but soon realised she could only think in terms of selling mortgages, and not what might be best for me.  A bit of background, I'm 57, I have 3 properties and acute angina!  I was thinking in terms of: may as well cash in one house to pay off the big BTL and start spending the nice lump sum while I can. She was only thinking "you don't want to lose rental income, how about a 5yr mortgage on the house you want to sell, and a 5yr mortgage on the big BTL?"  She was looking at 2 mortgage sales, I was looking at phase one of retirement!  I mentioned to her that she may have been looking at it from her point of view and not mine, and we haven't spoken since!  She's in the Times top 20, I think that's says what a good sales person she is....

snickpan

housebuyer143 said:

snickpan said:

BTL mortgage £345K this month reverted to 9.58%.  Can pay off £200K leaving BTL mortgage of £145K, monthly payments approx £1275 (I'll lose £400 a month return on savings)
I've put a house up for sale (in these troubles times, fingers crossed) which could pay off the rest of the rest of the BTL this year - which prohibits me from arranging a new BTL mortgage because of early termination fees.  Seems like I should stick with the massive 9.58% until I can pay the rest of it off.
Or arrange a 2 year 3.64% mortgage with a £1500 termination fee, a £3k arrangement fee, and monthly payments £737.
Sorry if I've kept it too brief, I'm verging on panic, can anyone see an obvious path?  I realise the house sale is a big variable time-wise

Why don't you arrange an ERC free tracker? That way you can pay lower now and then leave when you sell?

hopefully there are some non-ERCs for BTLs, will start browsing.  I was a bit tardy in my research, because I may avoid an arrangement fee if I stay with Kent Reliance.
EDIT:  It appears that 'no-ERC' tends not to be an option with BTLs. 

[Deleted User]

Can I suggest getting a good accountant on board? At 57 you should have a pretty good idea of your future plans and have a solid strategy in place. They can advise and hopefully give recommendations for 'the right people' to speak to.
No reason why you should be verging on panic, as they say, planning is all! Good luck with the retirement.

dimbo61

So have you got £200K sitting on the bank or under the bed or do you need to sell a property or the Rolls, Yacht,  or Gucci  handbags ?
That interest rate is ouch 

amnblog

Snickpan, the product you entered the link to above is not available to an existing KR borrower. You are looking at 5.99% with 1% going in and a 4% fee to exit so not smart if you have the property on the market.

housebuyer143

snickpan said:

housebuyer143 said:

snickpan said:

BTL mortgage £345K this month reverted to 9.58%.  Can pay off £200K leaving BTL mortgage of £145K, monthly payments approx £1275 (I'll lose £400 a month return on savings)
I've put a house up for sale (in these troubles times, fingers crossed) which could pay off the rest of the rest of the BTL this year - which prohibits me from arranging a new BTL mortgage because of early termination fees.  Seems like I should stick with the massive 9.58% until I can pay the rest of it off.
Or arrange a 2 year 3.64% mortgage with a £1500 termination fee, a £3k arrangement fee, and monthly payments £737.
Sorry if I've kept it too brief, I'm verging on panic, can anyone see an obvious path?  I realise the house sale is a big variable time-wise

Why don't you arrange an ERC free tracker? That way you can pay lower now and then leave when you sell?

hopefully there are some non-ERCs for BTLs, will start browsing.  I was a bit tardy in my research, because I may avoid an arrangement fee if I stay with Kent Reliance.
EDIT:  It appears that 'no-ERC' tends not to be an option with BTLs. 

There are definitely a few products with no ERCs out there. You may need to speak to a broker though to find them. 

dunstonh

BTL mortgage £345K this month reverted to 9.58%.  

That is an extremely high rate.    Are there any credit problems?

 She was only thinking "you don't want to lose rental income, how about a 5yr mortgage on the house you want to sell, and a 5yr mortgage on the big BTL?"  She was looking at 2 mortgage sales, I was looking at phase one of retirement!

Maybe she is not a financial adviser but a mortgage adviser.     Mortgage advisers will look at the mortgage arrangement. Most financial advisers don't do mortgages (some do but most don't as it is hard to be a jack of all trades nowadays).   Financial advisers look at the holistic overall picture, including tax.    The income on a mortgage case is small compared to what financial advisers normally deal with.   

Do you employ this adviser to give you retirement planning advice? (I wonder if it was just mortgage advice - hence the transactional nature of what she was saying rather than the overall planning nature).

She's in the Times top 20, I think that's says what a good sales person she is....

No-one takes any notice of lists like that as the majority of adviser firms and advisers don't enter such things.  

snickpan

amnblog said:

Snickpan, the product you entered the link to above is not available to an existing KR borrower. You are looking at 5.99% with 1% going in and a 4% fee to exit so not smart if you have the property on the market.

I think the 5.99%. is a product, when that product ends, you're left with the standard variable rate, which on a Kent Reliance Buy To Let mortgage is 9.58%.  I'd to arrange a 5.99% mortgage with them, but if I pay it off in 6 months, the arrangement fee plus ECR 'fine' might make it too costly.  https://www.kentrelianceforintermediaries.co.uk/buy-to-let/mortgages/products/02247-kbtl2211.  5.94 interest, 2% arrangement, 1% ERC.. not bad, but is it worth losing 3% of the loan just to have lower payments till July.  I'll be needing my big pencil and pad, now that I'm not as stressed as this morning