Fangoria

iTrader: (1)

I have just come back from 2 months vacation and was looking at the buy to let mortgages and the rates are crap

The only decent lender - the co-op through Charcol has pulled its mortgage

This was about one of the best at 4.5%( after the rate rise) with no tie ins, no legal fees, very little in the way of an upfront payment

The only sort of rubbish out there now is the Northen rock types at crappy rates, redemeption penalties and ridiculous arrangement fees like £595!! plus valn. sols, etc

Are there any good rates out there at all........ I currently have at least one property sitting on a residential rate - but I want to release more equity from this........ but cant as First Direct take into account this mortgage plus the others I have - i.e. residential not commercial

Where have all the decent buy to let mortgages gone - maybe this will cause the death of the house market for good down South!!

matt.bowey

I have just taken out a natwest BTL. No ties, £460 fee inc val & set up.......will let u know % tomorrow! Its a 2yr discount mortgage & my mortgage advisor tells me that it was the 2nd best deal out there last month. Halifax wos top, but I didnt have enough rental income to meet their criteria!

Fangoria

iTrader: (1)

Hi

What % rate are you paying?

Do you remember the Halifax rate?

Daz34

Ditto with Natwest. No tie ins, minimal set up fee & decent rate. That was the one that came out top when I saw a financial advisor today

Darren

Fangoria

iTrader: (1)

Tomorrow it is then............ for the phone call

garygg

Fixed rates are all up, but their are a number of decent rates out their. Depends upon whether you need tracker, tie ins etc. Also depends upon rental value etc. Generally you need 15% deposit

A good tracker at the moment is Bank Base + 0.35%.

Try Landlord Mortgages on 0800 917 3324

Fangoria

iTrader: (1)

Was looking at a remortgage to a buy to let to raise capital - tracker deals usually are the fairest on buy to lets - the fixed rate deals - like normal mortgages at the moment are a con

As far as the deposit goes this depends on the gross rental value versus the interest rate and usually needs to be 130%.... as the interest rates have gone up lately the 15% deposit amounts are looking less likely

I'll be making a few phone calls by the looks of it - thanks

garygg

You can get 125% of rent, but you will probably be charged 1% of loan which is added. - A con!!

matt.bowey

Fangoria,

e-mail as a reminder & I will dig out my BTL % details at home later!

Cheers

Matt.

Fangoria

iTrader: (1)

Thanks Matt

I have just gone onto the Natwest site

Its £200 plus the Valuation and a nice low rate

Arent there sols fees to pay though........- The co-op had a similar sort of rate (well about £600 all in) but for remortagages there was no sols fees?

matt.bowey

yep, solicitor needs to be paid!! u even need to have the searches done again!

Goochie

When they assess you for BTL do you have to be able to cover repayments yourself from your monthly income?

garygg

No, although in some cases your monthly income must cover your existing mortgage using the traditional calculations!!!. However, again, its down to the lender, product and deal being offered to meet your own circumstances

Goochie

Are 100% mortgages available as a BTL?

Fangoria

iTrader: (1)

100% - unlikely as your rental must more than cover your interest on the mortage - not come across any over 85%......

Have looked again at the Natwest one - its £200 plus £225 for a valuation and then say about £200ish for the sols fees

Theres a few deals out there around the 4.6% mark that I've now heard about with no fees whatsoever..... so I need to weigh it all up

I think I must have looked at some really poor sites out there the other day as the rates are not as bad as I first thought

Just hope I can get the remortatge done quickly to get some funds to buy another house - greedy me..... -

are there any banks/nuidling socs to aviod - i.e. because they take ages to sort out the deal?

garygg

Depends upon who you listen to, but I can tell you straight, no. You need a deposit of around 15% and the rent to match the amount being borrowed. ie you will not be able to borrow 100k on £200 pm rent etc. Its a mindfield, but brokers are best as unlike residential, BTL is all about circumstances, property, rent and valuers opinions and brokers can then source accordngly across the market

[Edited by garygg - 1/7/2004 1:24:30 PM]

Fangoria

iTrader: (1)

How much are people typically paying for sols fees on a remortgage - any good 'on -line' sites?