Buy to Let mortgage advice please

DrFeelgood

I currently have about £180K of equity in a buy to let property and I want to realease some of this money in order to buy another buy to let property for £250K. I would like to make both mortagegs interest only and I don't really want to be locked in for a long period of time. Given the nature of my business I don't have a great deal of income to show so would really need to be doing it non status or purely on a buy to let basis. I would really appreciate if anyone could point me in the right direction about the best deals at the moment. Thanks a lot.

Dr Feelgood

PS Thanks to Martin for maintaining such a great site.

vale_2

Hi
Loads out there...my pics at the mo are UCB, BM Solutions and GMAC...probably more to do with service than rate though. You need to get together with a broker.You will need to achieve a good rental value though on a 250k property!

herbiesjp

Buy to lets are normally based on rental income, so personal income is not always required.

There are lots of other lenders, apart form those mentioned above that could do a re-mortgage on a BTL for you.

westernpromise

I did my BTL with C & G through London & Country last December - 2 year fix at 4.99% with no broker charges and reasonable costs. That was 0.24% above base, which is not bad for a BTL.

The main constraints are loan-to-value (not more than 75%) and rent versus mortgage (former must be 130% of latter).

If you can wait a month or two, you may find rates improve - according to this article by Roger Bootle (off our intranet so no link), they're on their way down again as soon as next month:-

Today’s decision by the MPC to keep interest rates on hold at 4.75% makes a rate cut in August to 4.5% almost certain. I believe that this would be the first step towards much lower rates...August is an Inflation Report month. Historically, the Committee is twice as likely to change interest rates at a meeting that coincides with the publication of the Inflation Report.

This is because it allows the Committee to update its growth and inflation forecasts, which is quite a neat way of explaining why it is changing interest rates.

After the 0.25% rate cut I expect in August, it probably won’t be long before rates fall again, as the MPC moves swiftly to provide a boost to the weakening economy.

With inflation pressures likely to remain well contained, the MPC will be free to cut rates as much as necessary. I believe that rates will fall all the way to 3.5% by the middle of next year – but they could go even lower.