Can I get a better BTL interest rate?

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    Can I get a better BTL interest rate?

    Hi All

    My current BTL 2yr fixed mortgage is coming to an end

    Currently it’s 2.64% with 70%LTV (so the mortgage is a 75% LTV product)

    i thought id be able to improve on this during the renewal, but my current lender wants to increase the rate to 3.39% with no fee or 2.84% with £995 fee, and my broker says the best around is 2.34% with an alternative lender

    Am I missing something? Online I can see BTL products at 1.7% with 75%LTV

    is it because it’s not a new mortgage but a renewal???

    Many thanks

    #2
    Such loans are based on the rental calculation being sufficient, whether the applicant is a standard or higher tax payer and what incentives are being sought like No Product Fees, Free Valuation etc but taking a conservative assessment that you are a higher Tax Pay with sufficient rental to meet assessment I have identified 9 lenders who are offering rates between 1.53 and 2.00 with variants on incentives across a broad range of product offerings.
    No you are not missing anything but maybe your broker is unless there is something which might affect such research like being a standard tax payer with declarable income below £25000.

    Comment


      #3
      Originally posted by bhodgkiss View Post

      Am I missing something? Online I can see BTL products at 1.7% with 75%LTV

      is it because it’s not a new mortgage but a renewal???
      Yes, the best rates are for new customers only with this lender.

      They are having your pants down because they can.

      If you move to a new lender, you will probably have to pay for a valuation, legal fees, plus the hassle of changing. You may also have to pay a mortgage exit fee (AKA 'vacating' fee), check your mortgage statement.

      Bear in mind you will probably have to pay a broker fee if you decide to do a product transfer with this lender as they won't deal with customers direct.

      Knowing the cynical contempt they treat existing customers with, maybe it is worth changing lender anyway.

      Comment


        #4
        To assist further , the following lenders will offer remortgage s with Free legal and standard valuation fees with zero Booking Fees;-
        Barclays 1.60
        Santander 1.69
        TSB 1.69
        Godiva 1.69
        BM Solutions 1.71

        Godiva do offer a Free Val,Legal Fees and No Booking or Completion Fee for 1.85%

        Boletus is correct , Most lenders offer a proc fee of 0.2% to Brokers for Product switches and therefore can justify charging a brokers fee to the client given thatassociate mortgage networks deduct at least 15% of any lenders fees plus associated Professional Indemnity Fees.
        I agree whole heartedly that lenders are keen to attract new business but not aloffer Product Switchfacilities .

        Comment


          #5
          Many thanks all

          Comment

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