UK Landlord Forum / Life

Hi everyone,

I recently found this website as I am a novice landlord and my mortgage deal is about to end (hence I have been doing a lot of research).  My profits are going to go from about £250 per month to about £20  (and I have a one month old baby, sob, sob)

I need to remortgage and think I have found the best deal for me (from a poor selection).  The costs involved in setting up a BTL mortgage seem like daylight robbery.  Part of me thinks that going on my SVR might actually be an idea. 

Anyway I need to get a solicitor to sort out the remortgage.  Has anyone the contact details of a decent/inexpensive solicitor?

Also, have any of you increased rents recently?  I have had my tenants for coming up to 2 years, they are generally good so dont want to lose them but I think(?) rents are creeping up.  My flat is based in south london - any views on this?

Thanks
Rigsby 

Hi Rigsby,

I'm in exactly the same position as you, on both accounts. Firstly about needing to remortgage and secondly about increasing rent.

I've had the same great tenant for 2 years and I've yet to increase rent. But this year round I'm going to have to increase rates otherwise inflation will be the end of me! If I were you, I would look on rightmove and see what other similar properties are going for on the rental market. If you're undercharging by a large margin, then increase rates so your tenant is still getting a good deal.

I'm sure most tenants are aware of how what the market is currently like, so I doubt they'll blame you for increasing rates. It's a tough move, having to increase rates, but at the end of the day you have to be a professional landlord!

I still have 3 months before I need to remortgage but i've been looking around. The current deals are so bad that I want to cry. I'm going to hold out a bit longer, hoping lenders will be a bit more generous.

If the deal you've found isn't great, then I would go onto the SVR and hold out for a better deal to come along. If you remortgage, you'll probably be tied in for another 2 years. It may even work out cheaper to go onto your SVR, because of the costs involved with remortgaging.

Out of curiosity, what's the deal you found, and with which lender?

I can't really recommend any solicitors. The last one I used was garbage. But if you want a cheap deal just google "cheap conveyancing solicitor"

The deal is with mortgage express 6.39% for 3 years. I think the total cost to set it up will be £2300, then of course you have to pay the previous lender a charge for leaving, which I think is £175 - blimey its an expensive business!  Definitely think I will re consider going on my SVR, currently 7%. Its a case of will things get better or worse mortgage deal wise.  Wish I had a crystal ball

I would def go onto your SVR! It's the cheaper option!

Propertyfag,

Thanks for the chat. I have def decided to go on to the SVR until mortgages get more competitive - lets hope inflation is controlled and the BoE reduces interest rates.

At certain times and in some cases, actually more meaningful to re-mortgage, rather than stay in their current lender and ride the waves of changing interest rates.

I need to remortgage and think I have found the best deal for me (from a poor selection).  The costs involved in setting up a BTL mortgage seem like daylight robbery.  Part of me thinks that going on my SVR might actually be an idea. 

The deal is with mortgage express 6.39% for 3 years. I think the total cost to set it up will be £2300, then of course you have to pay the previous lender a charge for leaving, which I think is £175 - blimey its an expensive business!  Definitely think I will re consider going on my SVR, currently 7%. Given all this, you may find some relief in your monthly housing allowance; it is considering remortgaging your property.

I am a Commerce student and I'm having a research about mortgages. I really can't define mortgage since I have not encountered such but my parents always talk about it. Can you give me some relevant meaning so I can start my thesis? Thank you very much!

Quote from: propertyfag on June 05, 2008, 10:05:12 PM
I would def go onto your SVR! It's the cheaper option!

Whats SVR ?uk

Hello Urban Colour

I'd guess Standard Variable Rate.  I'd also guess it's "slang" for raising the finance by re-mortgaging to raise general finance against a main residence which has no mortgage.  BTL is about 6% interest rate.  A Loan to Value of under 60% can get rates of a bit more than 3%.  If you can pay half price for a mortgage, why not?