End of fixed term mortgage

[SteveO]

Hi, i wonder if anyone can offer me some advice or assistance.

I'm coming to the end of my 2 year fixed rate mortagage with Abbey. It was initially a residential mortgage however, i obtained a consent to let for a small additional fee.

I have been reading that buy to let mortgages are historically a lot more expensive that residential ones. I currently have a 5.79% deal on a £100,000 mortgage.

Does anyone know if there are there any decent buy to let mortgages deals out there, or would i be best to leave the mortgage to run it's course and convert to Abbey's standard variable rate at the end of the fixed term?

Any advice would be greatly appreciated.

Many thanks.
Steve.

[Holmes1981]

Have you tired moneysupermarket.com or spoke to an IFA?

[jeffrey]

Also try Moneyfacts.

[SteveO]

I haven't....but thanks for those suggestions, i'll give them a go.

[Poppy]

Consult a whole of market mortgage broker.

[MetropolitanAnthony]

Best to wait until 2 years are up before changing the mortgage. Any earlier and you may risk paying additional thousands of pounds in redemption fees whereas, once the mortgage is converted to SVR, the redemption fees will be zero or very low. Mind you, if you stick to deals from your existing lender then they will probably waive the redemption fee.

I think you did well to pay a small fee for the right to let. In my experience an additional 1% mortgage interest is usually the "fee" for converting from residential to BTL.

Some lenders can be really nasty and deny you the right to any of their nice mortgage deals if you are letting on a residential mortgage, even if you have their consent to let. This way they keep you on their SVR rate indefinitely. Get an assurance from your lender that they won't do this to you.

Finally, your lenders SVR rate is probably around 3% in the current market which is nearly 3% less than you are currently paying fixed.