Do people have any idea whether this is a competitive/realistic rate and fees for additional borrowing? I’ve had a BTL flat in Tower Hamlets for about 19 years ago, original BTL mortgage with BM.
Due to personal circumstances changing I am looking to borrow additional money using teh equity in the flat to purchase another flat to live in myself.
My mortgage broker is a bit inexperienced I think. He put me forward for The Mortgage Works but they declined as they said it was a deck access block in an area with historically low investor interest so now looking at additional borrowing v iwthBM at 4.1% and 3% fee. My LTV is about 9.75. I’m just disappointed with how expensive this is? Just wonderin g if this feels about right?
There are plenty of other brokers out there. Many will search the market and find you a deal at no upfront cost till you actually get an offer accepted (of course there may be application fees). If you are worried your broker is inexperienced try someone else with more experience?
Ive used "easyswitch mortgages " who work on that basis
but there are plenty of others also.
If your broker put you forward for an application and you got declined and it was a surprise or they hadnt warned you it was a distinct possibility, it suggests either the proposal is marginal or your broker didnt know the criteria used by the lender as well as they thought.
Well don’t let your broker use you to learn stuff! My broker used to take no charge from me. Last year she changed her mind. It took me only 24hours to get a decision when I did it myself. I am not saying you need to do it yourself but you might need to move onto someone more experienced.
I think he wasn’t aware of the criteria, and yes he seems quite inexperienced that’s the impression I get. I actually alerted him myself to the BM deal! I find it quite frustrating that you have to go through a broker for the BTL deals, I’d actually argue so it myself. Thanks for the link
Also maybe look at cost of remortgaging current btl for a larger amount (you’d presumably be doing that sometime anyway ) to free up £ for deposit and a different 2nd mortgage for your new place
3% sounds high but 4.1% low - you have to work out overall cost over the fixed period
Also a lot different whether you want repayment or interest only on new place (will btl sale eventually pay off the new place etc))
In this particular recent case it was a residential renewal. But certain lenders allow direct applications for BTLs ( i.e. direct customer application without broker). If you need specialist lenders then you might be stuck with the middle person. In your case, I would use AI to get initial lenders names who deals with direct customers and then dive into their application details.
Thank you. It’s interest only and yes I planning to sell the current BTL flat to pay off the additional borrowing in a few years (if the inner London market for flats improves, hopefully).
