buy to let re-mortgage - possibble?

buy to let re-mortgage - possibble?

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Discussion

CoolHands

Original Poster:

18,844 posts

197 months

Saturday 2nd March 2013
quotequote all
I have a flat on a btl mortgage. worth about 220,000; mortgage of 187,000, interest only.

I'm guessing that in these days and ages I can't possibly remortgage that to a provider that has a better interest rate deal than my current lot? i.e. I have no money to put to it, so the 'deposit' is as above, ie no where near 40% or whatever they want these days?

Sarnie

8,064 posts

211 months

Saturday 2nd March 2013
quotequote all
80% max LTV at the moment I'm afraid.....

Mr Noble

6,535 posts

235 months

Sunday 3rd March 2013
quotequote all
How long have you had the mortgage and what is the initial term of its 'deal,'. You will probably find that it will revert the a standard variable rate soon, if not already, which should be rather nice.

All my BTL's are now on various SVR's of between 1% and 1.99% over base. Currently very nice, and unlikely to change in the coming couple of years.

Remortgaging your 220k place now, I'd say, won't be worth it.

Sarnie

8,064 posts

211 months

Sunday 3rd March 2013
quotequote all
Mr Noble said:
How long have you had the mortgage and what is the initial term of its 'deal,'. You will probably find that it will revert the a standard variable rate soon, if not already, which should be rather nice.

All my BTL's are now on various SVR's of between 1% and 1.99% over base. Currently very nice, and unlikely to change in the coming couple of years.

Remortgaging your 220k place now, I'd say, won't be worth it.
This would only be the case if he was coming off a 5 year fixed rate, no product since then has a reversion rate similar to what you mention.....most BTL SVR's are 4-5%+ nowadays.....

Mr Noble

6,535 posts

235 months

Sunday 3rd March 2013
quotequote all
There were a few. But you're probably 99% right Sarnie.

I had a C&G mortgage revert 3 weeks ago, onto 1.99% over base for term. It was a 3 year tracker at 4.5% over base. Must have bought that property in Feb 2010.


CoolHands

Original Poster:

18,844 posts

197 months

Monday 4th March 2013
quotequote all
actually it looks like its a tracker - base plus 2% so not too bad. I took it out in approx 2008.

Sarnie

8,064 posts

211 months

Monday 4th March 2013
quotequote all
CoolHands said:
actually it looks like its a tracker - base plus 2% so not too bad. I took it out in approx 2008.
You wouldn't get a better rate than that from another lender, no matter how low your LTV was......