Lock into a rate with a low RTI now and complete in 2017

You’ve decided you want to remortgage your property to ensure you don’t miss out on the 125% rent to interest (RTI) calculation but you don’t want to pay any ERCs on your existing buy to let mortgage… Beckie Pepperrell explains how you can get round this if your current initial term is due to expire in the next six months.

It is no surprise that we have seen an increase in remortgage applications of late. With the uncertainty in the market following Brexit, rates at an all-time low and the threat of lenders’ stress tests increasing, now really is the time to act and bring some security to your future.

So, you’ve decided you want to remortgage but your current initial period hasn’t come to an end yet and you don’t fancy paying hefty early repayment charges - what can you do?

Did you know that every lender has a different period of time for which a mortgage offer is valid ranging from 60 days right up to six months for both purchases and remortgages! So if your initial period ends anywhere in the next six months why not apply for a remortgage today, lock into the low rate and 125% stress test calculation and complete in six months’ time? That way you will protect yourself from any potential lender changes without having to pay any ERCs on your current mortgage. Do get in touch if this is of interest.

Remember, offer valid times also apply to residential mortgage rates, so if you are looking to move house or remortgage in the next six months, give us a call to talk through these options too.

Beckie Pepperrell has left Mortgages for Business for pastures new. For more information or for any questions relating to this blog, please contact the Residential Team on 0345 345 6788, where one of our consultant mortgage brokers will be happy to assist. 

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Stress test: Why you can borrow more via a Ltd Co

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