9:07 AM, 19th July 2013, About 8 years ago 2
The prevailing mood in the BuytoLet remortgage world over the past three or four years has been “Rates are high; criteria are being squeezed; fees are high” – so it’s not been considered financially viable to remortgage.
Therefore Landlords have settled down and put raising equity or just remortgaging for rate to the back of their minds. As this period of natural stagnation has continued, it has reinforced the mood of doing nothing in many landlords’ minds.
If you have built or increased your portfolio in recent years, it is worth regularly reviewing your assets. A quick look at a range of BTL lenders current SVR’s, reveals rates at 4.5% at best, and some as high as 6.58%!
However, things have changed over the past 4 or 5 months, and there are some really competitive rates around. So what should you be paying? What about the fees? Of course, not everyone would qualify for the products below. The usual Terms and Conditions apply etc, but for the many BTL borrowers that would qualify, here is a selection of currently available products concentrating on low lenders arrangement fees. All are at 60%LTV, with the exception being the last example, which is at 65%.
The following example products show:
Rate Type – Lenders Fee – Savings vs SVR at 4.99% on a £100,000 interest only mortgage over 24 months
Sub £300 Arrangement Fee
3.59% Discount for 2 years – Lenders Fee £99 – Saving £2,800
3.74% fixed for 2 years – Lenders Fee £0 – Saving £2,500
Sub £1000 Arrangement Fee
3.29% Tracker for 2 years – Lenders Fee £999 – Saving £3,400
3.39% Fixed for 2 years – Lenders Fee £995 – Saving £3,200
Fees Free (standard legal package and free valuation), Low Arrangement fee
3.65% Tracker for 2 years – Lenders Fee £495 – Saving £2,679
3.59% Fixed for 2 years – Lenders Fee £500 – Saving £2,800
Of course, there are other fees associated with a remortgage, but as you can see, even after they have been paid there is a positive net saving. Despite the above being available at 60/65%, there are many other rates at higher LTV’s that may be suitable for you, and there are BTL deals available up to 85%.
If you need any assistance and to ensure that you receive the very best advice, service and rates please complete your details below and we will have one of our preferred BuytoLet mortgage brokers give you a call.
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