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I have a "LET TO BUY" mortgage paying £1000 mth, comming to the end of its two year term, (150,000) what should I do to get a cheaper remortgage?

director
by director 14 January 2010  |  Comments 3 comments  |  Love Love  0 loves

There is about £35,000 equity, hopefully, although the value plummeted 18 months ago, but I believe has now retained its original value. We got this mortgage at the beginning of the crash as it was the only type available. Our other property has the same value interest only mortgage and costs us less than half. can anyone point me in the right direction please?

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Comments (3)

  • Swarbs
    Love rating 272
    Swarbs posted

    When you say let to buy, do you mean it's the mortgage on the rented property or on the property you bought to live in? If it's on the rented property, you will struggle to get a mortgage of £150,000, as this will be over 80% of the property's value, and I don't think there's any BTL mortgage currently available that will cover it. If you are living in the property, you'll be able to get a standard residential mortgage - most lenders are now offering loans up to 85% LTV so you'll have a wide choice. Call a decent mortgage broker and they'll be able to advise you on the best option to take.

    Posted on 14 January 2010 | Love Love  0 loves Report
  • MortgageGuru
    Love rating 19
    MortgageGuru posted

    Hi Director.

    Based on the figures you have provided so a mortgage balance of £150k and a property valuation of £185k you will be looking at borrowing 81% of the properties value.

    At present most Buy To Let Lenders are only allowing a maximum of 75% LTV borrowing so I would suggest two things -

    Firstly see what your exisitng lender can offer and secondly if you can pay off a lump sum into the current mortgage say £11,250 and bring your LTV down to 75% I will be happy to provide some options. Is the second option doable?

    Feel free to call or email me.

    Regards

    The MortgageGuru ( 02072978190 - bhavesh.shah@lovemoney.com)

    Posted on 14 January 2010 | Love Love  1 love Report
  • director
    Love rating 0
    director posted

    Thank you call me on 07971114511

    Posted on 01 March 2010 | Love Love  0 loves Report

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