And who doesn’t like something for free? I am like a rat up a drainpipe when it comes to saving myself money. Let’s face it, we all work so hard for it, why give it away?
Remortgaging has been a sticky point for a while.
Many landlords who took mortgages out pre-credit crunch are paying rates in the region of 1.5-2.5%, as this is how the reversion rates used to be priced.
Amazing for these people, I am sure they have been feeling nothing less than delighted with their buy to let mortgage for the last few years and thus, the concept of remortgaging is very unattractive.
Remortgage to protect yourself against a rise in Bank Rate
However, and I know some of you will disagree, but rates aren’t going to stay low indefinitely.
And buy to let mortgage pricing is as low as I have ever known it… and so maybe, just maybe, if you could lock into a five year fixed rate at 3.44%(5.3% APR) with no cost* to you for the privilege (lower rates are available if you are happy to pay lender fees if it makes sense), you’ll may well agree that it’s worth thinking about whether now is the time to revisit your mortgage arrangements.
*Here’s the asterisk bit…*
When I say no cost to you, I mean no lender fees – arrangement fee, valuation fee and legal fee. You would have to stump up our broker fee!
Remortgaging to save money
For those of us who took a post-apocalyptic mortgage, the rates we go onto after our initial deal has ended aren’t looking quite so pretty – 4.5%-5% is the average.
Working the maths, assuming you owe £150k on a property worth £200k and you were on an SVR of 4.74%, and assuming there are no rate increases over the next two years, you will be paying interest of £14,220.
Saving £5,000 on your buy to let mortgage
OR you could remortgage onto a two year fixed rate at 3.19% (5.6% APR) with no set up costs (lender arrangement fee, valuation or legal fees) and instead spend £9,570 interest.
So you will have saved nigh on £5,000 – give or take our broker fee - and protected yourself from any rate rises during this period.
It’s a pretty compelling argument, yes?
Top 10 best buy to let remortgages
To help you out, we have put together a list of the top 10 remortgage products for buy to let.
Whilst these deals are fantastic, there are plenty of other options which have a free valuation, free legal work and no lender arrangement fee.
Our brokers are happy to look at all of the options on your behalf without any charge, to see which will save you the most money whilst fitting your individual circumstances.
Free property portfolio review & health check
So it would make sense to fill out our free property portfolio review form and let us figure out how much we can save you.
If filling out a form feels like too much work, by all means just give us a call or send in your own spreadsheet.
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23rd February 2016