Landlords, increase your rental yield simply by keeping a close eye on when the initial mortgage product comes to an end.
When the date is near a Rate Switch enables you to avoid moving to the mortgage lenders Standard Variable Rate (SVR). It's a simple low-cost process and can be quicker/cheaper than a remortgage.
With Bespoke Finance you can be assured we will compare Remortgages and Rate Switch to find the Best Buy-to-Let Mortgage.
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You may be eligible to switch your current mortgage product for another one with the same mortgage lender. You may do so if you are coming to or have come to an end of the initial mortgage rate.
"Rate Switch" or "Product Transfers" are other names for product transfers. They should not be confused with a further advance that allows additional borrowing. A product switch is like for like.
To some landlords a buy to let product switch is favourable as it is quick. Often you will not need a re-valuation or provide further evidence documents in most cases - though there are eligibility criteria.
Unfortunately not all buy to let mortgage lenders offer product switches. Though it is of the higher frequency with a large volume of lenders providing this service, to retain you as a client.
Those lenders that do not offer a product switch service may find you leaving them when your mortgage adviser considers remortgage options.
Mortgage lenders criteria are not as comprehensive for product transfers as purchases or remortgages. Although Landlords still are checked against slimmed down processes.
Eligibility Criteria may include your mortgage payment arrears history with the lender, credit history, loan to value and remaining term of the mortgage.
Your mortgage adviser can apply to the lender to switch the mortgage product up to six weeks before the current product end date. Often just before your product would fall onto the lender's standard variable rate (SVR).
We can apply if you are late and are already on the mortgage lenders standard variable rate (SVR).
Mortgage lenders use an Automated Valuation Model (AVM) to estimate the current value of the property.
Allowing better rates on house price rises allowing lower Loan to Value, the opposite if the house price has fallen.
The accuracy is not always correct, especially if you have made changes to the property that may increase its value. It is often possible to ask for a valuation or look at remortgage options.
An arrangement fee may be charged depending on the product you select and your lender. Similar to remortgaging may be able to opt to pay a higher fee to obtain a lower interest rate.
Typically product switch fees are low. However, you may consider taking legal advice which may incur expenses.
You can not increase your mortgage loan with a product switch, though you can use a Further Advance (or remortgage) a similar service some mortgage lenders offer via your mortgage adviser.
It is not typical to change the repayment method on product switch - though with some lenders it is possible to do. It may bring in further eligibility criteria based on your age.
It is not typical to change the repayment method on product switch - though with some lenders it is possible to do. It's easier to move from interest only to repayment than it is from repayment to interest only.
It is essential you use a mortgage adviser who will compare a remortgage to a product switch. Doing so can ensure you get the best product to suit your needs and requirements.
Our mortgage advisers at Bespoke Finance will be happy to help, call us with your mortgage account number in hand.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
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Bespoke Finance Direct Limited is authorised and regulated by the Financial Conduct Authority (No. 715805) to transact regulated mortgages.
The FCA does not regulate some investment mortgage contracts.
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