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

    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.


      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.


        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 .


          Many thanks all


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