Long-term fixed rate mortgage for BTL

[johnjw]

Does anyone know of a source for a 20-25 year fixed rate mortgage for a BTL property where the loan would be 30-40% of the value?
What interest rate would you expect to pay on such a loan?
Any information given will be much appreciated.

[johnjw]

I was hoping that someone might come forward with a view on the future for interest rates. It does look like the government(s) will try to keep bank rate near zero for some time but I'm thinking that present policies will lead eventually to inflation taking off and interest rates rising.
There doesn't seem to be a lot of long-term fixed rate products on the market. The very limited information I have, is pointing to over 6% for a 25 year term - considerably more than currently available variable rate loans.
Is this in line with anyone elses experience?

[subjecttocontract]

You are probably better off looking for some of the larger finance companies views on interest rates rather than individual opinions. Nobody can see the future but with base rates at 0.5% the only way is up, the question therefore is when.

Given the current situation, in my opinion, I think we will be looking at these low rates for a while yet.....at least until after the next g/election.

[johnjw]

You are probably better off looking for some of the larger finance companies views on interest rates rather than individual opinions. Nobody can see the future but with base rates at 0.5% the only way is up, the question therefore is when.

Given the current situation, in my opinion, I think we will be looking at these low rates for a while yet.....at least until after the next g/election.

Thanks for the comments. You're right when you say that no-one can see the future but we have to take a view on future trends based on the best information we can get hold of. I remember taking out a 10% fixed rate loan c. 1980 and thinking that it was a reasonable deal - a decision vindicated by 1990 when rates rose to over 13%.
But maybe now is different. Inflation and interest rates have been low for many years. Today's paper quotes 4.25% goverment stock maturing in 2032 ie. 23 years form now, at £102.48 for £100s-worth of stock. I interpret this very small premium as meaning that the expert view is that average interest rate on a very safe investment over the next 23 years, will not be much over 4.25%.
Of course you'd expect to pay a bit more for a rental property mortgage, but perhaps a 25 year fixed rate at over 6% isn't a good idea.

[davidnoble]

I was hoping that someone might come forward with a view on the future for interest rates. It does look like the government(s) will try to keep bank rate near zero for some time but I'm thinking that present policies will lead eventually to inflation taking off and interest rates rising.
There doesn't seem to be a lot of long-term fixed rate products on the market. The very limited information I have, is pointing to over 6% for a 25 year term - considerably more than currently available variable rate loans.
Is this in line with anyone elses experience?

As a commercial mortgage broker I would be happy to keep you in touch with changes

BTL etters have always been lazy in this area-typically looking for long term rates

If I may say you need to enlist a broker

Contrary to popular belief we are not selling junk to mugs

A broker should be covering-cradle to grave for ALL your needs.

BTL being merely one of them

Sadly most calls treat you as a search engine

" yes,but whats the BEST rate today" is the normal cry

Happily BTL will soon be regulated

Many brokers will now have to treat you seriously
You too will have to take a more professional approach!

At 405 you are never going to have problems finding the best rate

As for now
remember the problem is most lenders have withdrawn from the market
There are "green shoots"....but they are timorous...and weedy

You dont say-purchase or remortgage....or...why you want this long term deal right now

SVR will never get any better-whichever lender you are with

You have at least another 6 months of grace

If buying
Go for 3 to 5 yr deal

Best 3yr-current

5.19%
Arrangement fee £2500 added ( regulation may do something here!)
Redemption 3% for 3yrs

keep in touch!

Dr David Noble

Customised Mortgage Solutions

[davidnoble]

I was hoping that someone might come forward with a view on the future for interest rates. It does look like the government(s) will try to keep bank rate near zero for some time but I'm thinking that present policies will lead eventually to inflation taking off and interest rates rising.
There doesn't seem to be a lot of long-term fixed rate products on the market. The very limited information I have, is pointing to over 6% for a 25 year term - considerably more than currently available variable rate loans.
Is this in line with anyone elses experience?

apologies

Best rate today

5.19% 3yr fix
A £1495 added
Red 5% for 3 yrs--more painful penalty better Arr fee!!

regards

Dr David Noble

ps

Its perfectly possible that your broker could "broke" a better deal for you-depending on your circumstances-and-his contacts!