remortgaging with nationwide,turned down coz of existing buy to let

brummiebird443

Maybe i'm wrong but I would have thought Nationwide have the right approach.

Otherwise we'd all go out borrowing the banks money to buy a property to rent out just because the rental income will pay the mortgage.

If you didn't have a tenants the bank would want paying still and their calculations say you can't afford it.

yes i understand that everybody would go out and buy houses to rent out using the banks money but i'm sure you are aware that you have to have a half decent deposit to put down before you go down that route.
and the money that we want to borrow is only adding an extra £150 a month on our existing residential mortgage. (£25K on a property worth £135k) I could understand it if we had a huge mortgage on our home but in comparison to the value of our house it really is a pittance!
The world of mortgages is a complete nightmare and to be honest the best deal i've found is the Northern Rock one, have to speak to them on monday, will let u know how i get on. If anyone come across a good remortgaging deal i'd love to hear from you.

thanks,
very depressed Brummiebird!!

MarkyMarkD

If, as I was suggesting for a £50k loan, you are looking at a fee free product, I would beware the fact that the comparison sites show some of NR's loans incorrectly. If you take a 2 year NR product, and "help with fees" you are effectively tied in beyond the 2 year period - but the products are incorrectly shown as not having an extended tie.

So DON'T take NR's help with fees unless the product's own tie-in period exceeds the tie-in period on the help with fees.

I would doubt, personally, that NR's deal is the best for your circumstances - would you care to share which product you are going for?

brummiebird443

Hi Mark, a fee free product is what we really want but the search engine that i used (moneyextra.com) is showing a number of deals from Building societies like Mansfield BS 4.75% Discounted variable for 5 years (£284.77 per month) with the following costs. But because they are a building society i'm sure they have the same criteria as Nationwide and Brittannia

[B]Lender's fees
Arrangement: £40
Redemption: £75
Total lender's fees added to loan: £40

Total lender's fees payable: £115

Example costs:
Stamp Duty: £0
Land Registration: £300
Search: £125
Survey: £315
Legal: £400

Total example costs: £1140
(These are example costs only - please check as the lender may offer to pay all or part of these).

The Northern Rock deal is as follows
Lender's fees:
Redemption: £250
Total lender's fees added to loan: £0

Total lender's fees payable: £250

Example costs:
Stamp Duty: £0
Land Registration: £300
Search: £125
Survey: £315
Legal: £400

Total example costs: £1140
(These are example costs only - please check as the lender may offer to pay all or part of these).
Other information about this mortgage:
Interest calculated: Daily
Conditional insurances: No
Period for which early repayment charges apply: 61 Months
Details of early repayment charges: Discharge Fee £250.00
Up to 01/10/2010 3% Mortgage Advance
1st 42 Months £1000.00 Cashback Reclaimed

These are just 2 out of 20 which showed up on the search but all pretty much along these lines. I'll be doing some more reserach tomorrow and this is by no means our final decision but this whole thing totally confusing, all i want is a no fee remortgage witha decent interest rate, maybe i'm asking for to much (booo hoooo sob sob sob, she types hysterically!!!)
I hope this makes some sense.

dwsjarcmcd

brummiebird,
Don't give up on any lender, Nationwide will have their reasons based on their experience. Other building societies have different views. Without going into detail about income etc. the key thing any lender will look as far as your BTL is how long you have had it and is it rented out. If they turned people down just on that reason, they wouldn't do too much lending. Try the Yorkshire, West Bromwich, Britannia as well as the Rock and whoever else. Finally if you are happy with the product, then thats all that really matters!