BTL Mortgage Rates

Jaco70

I borrowed a small amount (30k) against an unmortgaged BTL property about eight months ago, through a local broker that I have used before.

I needed the money quickly, and didn’t give much thought to how much the interest only monthly costs were. 

I’m now doing an overhaul of my entire portfolio, and it would appear that the rate I got was around 3.7 percent, way lower than my other BTL loans, which have been in place for a long time.

I have emailed the broker to see if we can make something happen across all the properties at this rate, but obviously I haven’t heard back as it’s a holiday. 

Does a rate that low seem feasible? I’d be looking at an annual interest saving of about 7k, which is massive. 

housebuyer143

I'm not sure there are any BTL rates around at 3.7% without a huge fee at this time and even then I'm sceptical. What rates are your others on?

Jaco70

housebuyer143 said:

I'm not sure there are any BTL rates around at 3.7% without a huge fee at this time and even then I'm sceptical. What rates are your others on?

I think they’re around 5.5 

pramsay13

There are a few around that rate so it is possible. 
Whether or not it is worth switching will depend on charges on the current mortgages. 

alanyau88

Be careful of just looking at the BTL mortgage rate.  You need to factor in all costs as well as well as the length of time fixed.  For example a 5% fee for your 30k would mean £1500.  For £300k, the fee would be £15,000.  If that fee was put to work in a compound interest ISA savings account, that would make over £3,000 over a 5 year period.  Just do the maths and compare which deal is cheapest.