Remortgage from interest only to repayment

Patty6666

We have a 2nd property which we rent out. For the past 8 years or so it has been on interest only and the lender rate is now over 9%
According to the website comparisons a repayment option would save £50 per month and be a repayment over 20 years.

This looks really appealing but never done this before and I've rather not do it via a broker if I can do myself.

Anyone know if any restrictions to going this via repayment mortgage  if the property is not our main home
Do I just apply for a new mortgage and then attend any meeting with the provider, or do I meet them first? I prefer using a high street bank.
Do I need to tell me current mortgage provider I'm leaving or does this get done behind the scenes

Thanks 

BellaBlondykeTheThird

I believe the key here is that if you rent out the property whoever you remortgage with on a repayment basis allows you to rent the property out in its terms and conditions.

What high street lenders have you researched that allow this?

pramsay13

Why is it over 9%? That's a terrible rate even for BTL. Is it just on the SVR?

I assume the comparisons you have done will be for residential mortgages so you won't be able to use them. 

You will need to compare BTL mortgages and then see if repaying the mortgage is worthwhile. Bear in mind you don't get any tax relief on the capital repayments. 

housebuyer143

Nothing stops you remortgaging anywhere else on interest only (at maybe 6%) and then overpaying. It's risky committing to repayment on a BTL because your required payments are higher and if your tenants don't pay that's more money for you to find.

Patty6666

Thanks so much for the responses so far. Barclays is looking decent for me at the moment.  My current rate at the moment is high due to the provider and moving onto a variable rate.