X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Buy-to-Let

    To take or not to take

    Hi all 

    I have two Btl's which one has a14 months left before I can remortgage it was valued at 140,000 at the time of remortgage.

    There has not been lots of houses sold in recent years to compare but there has been about 1500 new homes built in the last 4years with in half a mile if this house which are selling for 190,000 upwards.

    The question is the house 3 doors down just sold for 160,000 which is in the same standard of finished and is a semi and 3 bed like mine.

    So I am thinking the below:

    1 remortgage to new value at 160,000 take up to 75% out of the house and sit tight and see what happens with Brexit and the high change of a down town.
    Pay the epc.

    2 just wait for it to end and hope that there is not down turn and hope  the LTV drops. 

    When I do remortgage I will do a 5 year fix on with both options.

    Thanks 
    0
    0

    Just to clarify did you mean ERC (early repayment charge) or EPC?

    If you meant ERC, its worth noting that not only will you have to pay the ERC, you will also likely have to pay another arrangement fee for the new mortgage and these can run into thousands of pounds.

    The answer will also depend on if you are desperate for cash, your tax situation, and your long term ambitions for the property.

    Perhaps research the ERC and a possible new mortgage and the fees involved and see if the maths provide an answer?  Numbers never lie.

    It is tempting to take advantage of some cracking rates at the moment, so I can understand why you are tempted ... !

    0
    0

    It may not solve your "need" to protect against brexit to fix for 5 years.
    Though typically if you had ERC's on a mortgage but wanted to release some equity, you would consider 2nd charges.

    Your hoping option (2) that house prices dont drop, though in option (1) at a higher LTV you would be in danger of being in Negative Equity. It may seem ok now but after 5 years stuck on SVR may not be desirable.

    In addition, is getting a 5 year fix wise?
    The prediction is rates will drop post brexit, as its there to controll inflation. The doom and gloomers are that spending will fall meaning base rate will increase.
    Then again there is no guarantee bank's appetite to the lender will remain. (though personally i think it will).

    0
    0

    _________________________________________________________________________


    My posts are not financial advice, just a rambling guy passing time on a coffee break.
    The team at Bespoke Finance offers advice, including Limited Company Buy-to-Let , HMO Conversion and Cheap Life Insurance.

    _________________________________________________________________________


    just because one sold in street same house and spec doesn't mean that they will value it the same for a remortgage, even if yours is better, valuations im finding ar 10-15% lower than they should be when remortgaging

    0
    0