Are there any worthwhile buy to let remortgages with 85% LTV out there?
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272Swarbs postedDepends what you mean by worthwhile. There are no mainstream lenders still offering them. You may be able to get one from a specialist lender like:
http://www.nationwide-asset-finance.co.uk/business_financing/commercial_mortgages.htm
http://www.lml.co.uk/php/buy_to_let_criteria2.php
but be prepared to pay higher interest rates. They don't state the rates on their site, which generally means they will start with at least a 6 and possibly a 7 or 8.
Posted on 19 February 2010 |
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62TheWelshman posted
Hi Debtfree1
Thanks for the question!
Swarbs is right, the market is dictating that you need 25-40% deposit as present and the fees are very high!
Would you have any money to reduce the amount down so you can then remortgage onto a better rate?
Of course, you can stay on the Standard Variable Rate until the market recovers?
If you would like to discuss in more depth, please drop me an email tim@lovemoney.com or ring us on 0800 804 8045.
Regards
TheWelshman (a member of the lovemoney.com mortgage team)
Posted on 19 February 2010 | Love 0 loves
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0Debtfree1 posted
Hi everyone,
thanks for your replies. I chose that username because it is my target this year! :0)
It's a case where I have been granted retrospective planning permission to seperate my buy-to-let victorian terrace into 2 seperate abodes i.e. the seperation has already been done. I on a low interest rate at the moment base rate + 2% but would like to pull out the equity on the now 2 properties.
I'll think about your replies and update sometime this weekend. Thanks
Posted on 20 February 2010 | Love 0 loves
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272Swarbs posted
Can you pull out equity at 75%? If you go any higher, you are likely to be deal, will take up the vast majority of the extra equity you release. BTL at the moment is very much a case of delayed gratification until the speculators and bad landlords are driven out of the market and lenders become more willing to relax their lending criteria.
Posted on 20 February 2010 | Love 0 loves
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410manzanilla posted
I agree with swarbs - go fror 75% and get yourself a decent deal.
Posted on 20 February 2010 | Love 0 loves
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804MikeGG1 posted
Since the crash everything has been risk-assessed. The lower the equity that you retain, the higher the risk to the mortgage provider, so the higher the interest rate charged.
You have to make a balanced judgement between the amount that you can borrow and the amount that it would cost you.
I suggest that you should draw up a table with the best deals at each 5% of loan. Then work out how much extra each 5% would be. The cost of the extra 5% is not the rate at that level. It is also the extra cost of the earlier levels.
I think you will quickly determine where to stop.
Mike
Posted on 20 February 2010 | Love 0 loves
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0Debtfree1 posted
Thanks guy. I'll look at the 75%LTV rates. Its just that my husband and I have 45k personal debt 95% of which was used to seperate the property into 2 flats 4 years ago. Maybe I could leave the mgte as it is and look for a secured loan on the BTL property to cover this debt (if that sort of thing exists). Just don't want to carry the burden of the debt any longer. It should be footed by the property.
Posted on 22 February 2010 | Love 0 loves
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