Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
I recently sold a BTL which whilst it generated good net profit when occupied (mainly due to low tracker rate mortgage), was always a problem property. Tenants not paying, wrecking the property, I suppose we all have them. So I decided to let go.
The property had an 85% mortgage on it with BMS and I ended up receiving a small amount extra in equity back. I’m not sure I want to invest in anymore BTLs as I have other business interests now, but I am wondering whether I should try to transfer the mortgage to another property.
I understand it can be transferred up to 6 months from the redemption date. Whilst most of my other properties are also on low rate trackers. I have 2 on SVR at rates 1.55% and 2.5% above the rate of the recently redeemed mortgage, plus one with West Brom at their ‘tracker/variable move the goal posts rate’. The only problem is both of the SVR properties have larger mortgages than the one redeemed and one is definitely in negative equity whilst the other probably has little or no equity.
Without putting in a substantial sum I think it unlikely I can transfer the redeemed mortgage over to either of these properties, unless anyone has any other thoughts. The West Brom property has plenty of equity but the rate saving would only be .75% and I’m very hopeful we win the forthcoming case and I get my original terms on that mortgage reinstated.
Finally would it really be worth purchasing another BTL just to make use of the low rate tracker (2.45%), although I’m assuming that in this case any lending would be restricted to the BMS current criteria and in addition I still have 3 other BTL mortgages with Lloyds Banking Group subsidiaries, so I’m not sure they will allow a 4th property anymore.
Any input, comments appreciated.
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