Buy To Let - deal ending

Johnk1

Hi,

I am new to MSE and am hoping I can get some advice. I am currently letting out my only property and have a 2 year fixed BTL mortgage with Chelsea that will end in September.

I am not totally happy with the way that Chelsea treated me as a long standing customer when I had to relocate for my job and was told I had to take a new BTL mortgage (as well as paying them numerous fees for their permission to let) or pay their SVR + .25%.

I am yet to approach them about my options but I notice that their current best BTL deal is another 2 year fixed deal at 7.59% - I am currently on a 5.85% fixed. I am reluctant to sign up for 2 years as my situation may well change and I'll either sell the property or move back into it in that timeframe.

What are your thoughts on my options? I have only just started researching but note that most mortgages (apart from the high rates!) all have inflated arrangement fees compared to 2 years ago. Perhaps my best option would be to let it revert to their current SVR 7.49% plus the additional .25%, unless that has also increased, in order retain some flexibility over my options and avoid lump sum arrangement fees and/or early repayment charges.

I will have around £100k left on the mortgage with 14 years left on the term.

Any advice appreciated.

poppy10_2

SVR is your best option, but I'm sure you can find one cheaper than 7.49%. Do you have any equity in the property?

Mr_helpful

poppy10 wrote: »

SVR is your best option, but I'm sure you can find one cheaper than 7.49%. Do you have any equity in the property?

Im not sure that that is the case. it depends what you want to do with the house and it may be possible to get a lower loyalty product from the chelsea or a remortgage may be beneficial despite some of the charges going up. Some companies have rediculous fees others dont.
You should see an independent broker. Some will give advice and complete the remortgage with out charging you broker fees.

Johnk1

Thank you for the replies.

I do have some equity in the property - it is worth around 270,000 and the mortgage balance is around 100,000.

I was thinking of using a broker. Any thoughts on when I should start making enquiries, both with Chelsea and a broker? The fixed BTL deal ends in September.