VERY interesting conversation with a landlord of ours today.
He has a small portfolio of four properties the first purchased about 10 years
ago. Some of them have been remortgaged to finance deposits for further
purchases but he has not looked at the mortgages on each of them for a few
years.
Why would you when rates have been so low?
He has just this week sat down with his broker to remortgage
the portfolio because he like most of us he wants to ensure his portfolio is as
income effective as it can be in the future. We are likely to see further
interest rate rises and he wanted to protect himself from those increases.
Income is going to be eroded by tax changes and other costs he can do little
about so he wanted to make sure he was being as sensible as possible regarding
the mortgage packages.
He was stunned to find that he can fix the
rate for 5 years on each of his properties at a LOWER rate than he is currently paying!! Yes that’s right...he can
actually reduce his monthly costs AND protect himself from any rate
rises for FIVE years.
With the almost complete lack of new entrants to the Buy to
Let market lenders are desperate to lend to existing landlords by way of
remortgage. The rates they are offering are super competitive. Many have few if
any costs with many offering free survey and conveyancing, some even offer a
cashback in addition!
If you have not looked at fixing your mortgages you really
should be talking to your broker or at the very least be browsing the internet
to look at rates NOW. You may find that you, like this landlord can get a
stunning result for little cost.
If you want to talk through your investment plans and
strategies as always I would be delighted to help you.
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