Landlords advised to consider all BTL mortgage costs

Published: 07/02/2013

Landlords are being warned of the financial impact additional fees can have upon “competitive” buy to let mortgage rates.

According to research by specialist buy to let mortgage broker, Mortgages for Business, lender, valuation and legal fees can add up to 2 per cent a year to the effective individual cost and significantly transform impressive headline rates into rather costly deals.

David Whittaker is the Managing Director of Mortgages for Business:

“By including fees we have produced indices that more accurately reflect the costs of taking on a buy to let mortgage without the distortions caused by the way lenders structure fees on products to meet marketing requirements.

“Lender arrangement fees vary enormously. Some products carry a flat fee but most have percentage fees which can be in excess of three per cent. This can make headline rates extremely misleading.”

While we can’t advise landlords what constitutes a decent rate, we can help with the legal cost of buy to let transactions.

The good news for landlords is, unlike many solicitors, Goldsmith Williams does not charge extra for buy to let. Our competitive purchase fees start from just £399 plus VAT and disbursements while buy to let remortgaging is just £299 including VAT and standard disbursements. And, more importantly, when you request a quote from us, you are presented with the total charge; no nasty hidden surprises here.

Content correct at time of publication