Just got a quote for a Buy To Let from a broker? need a little help

Jimster_s_2

Hi

ive just got a quote for a buy to let mortgage from a broker.

ive got a quote for a fixed mortgage with first active for 2 years at 5.19% (feees arnt writted down here)

i also asked for a quote on a discount mortgage and i was told
"The discount rate is the same as the fixed 5.19 %. i.e bbr +0 .69%. fees are the same for both."


does this sound right?
are the rates competative?
are the fixed rates and discount rates usually the same?

id also like to know how to work out what the interest rate should be. ive read through most of this site and still need a few questions answering.

what is the uk interest rate and where do i find out what this is?
i have done a search and found news on the bbc saying it is 4.5, which does follow what my interest rate says.

i thought a discount mortgage would set it below the uk interest rate hence the name discount? maybe im wrong and they just set it a smaller % over the uk interest rate than normal.


is there any views anybody has on my quotes?

Pinkleylandii

Hello

Try Standard Life 80% LTV 4.99% fixed rate for 2 years only tied in for that period. No broker fee go direct (be careful of brokers will charge 1.5-2% fee £1500 or more).

Try Standard Life.

To calculate morgage. Use https://www.espc.co.uk - pick any property and use the calculator at the side of the screen put the amounts in and rate and hey presto your interest payment. I am not sure what the Standard Variable is but I think it is 6. ?%. I asked the question on buy to let earlier and a kind person told me about Standard Life. Elaine

Ian_W

jimster_s wrote:i thought a discount mortgage would set it below the uk interest rate hence the name discount? maybe im wrong and they just set it a smaller % over the uk interest rate than normal.

The BofE base rate is 4.5% - but each lender sets their own Standard rate which varies between about 5.9 and 6.9% - the discount refers to the lenders rate not the BofE rate.
As well as Standard life - Try MONEY FACTS BEST BUYS
Things to watch for are penalties that apply beyond the fixed or discounted period if you want to remortgage to a better rate when the disc/fixed part ends. BTL rates are fairly low at the moment, may go a bit lower but no-one knows - so might be a good time to fix as, of course, they could well go up.

payless

Pinkleylandii wrote:

Hello

. No broker fee go direct (be careful of brokers will charge 1.5-2% fee £1500 or

Lots of brokers, including many who post on here , don't charge a brokerage fee