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Hi Guys, 

So I have 6 BTL properties and my strategy is simply to buy a property, refurb it and let it out for 2 years on a fixed interest only mortgage, before refinancing it after 2 years to take out as much as I can to fund the next property. 

So, I’ve got 3 properties that will require refinancing next year, however I had one property that required remortgaging (my first property) but i used the existing lender who gave me a great deal for the next 2 years, (but I wasn’t looking to take any money out of the property) and was so simple, easy and quite cost effective, and only required a signature... however they did not revisit the property...

I’m just wondering if the rates are competitive if it’s worth sticking with the existing lenders, or do you think it’s worth going with another lender who will come out and view the property and comparable properties to give me a better valuation than the existing lender...???

I’d be interested to hear your thoughts...

Thanks, 

Neil

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The problem with Product Switches is that they are not always competitive in today's market, lenders generally charge a higher rate than what you can find elsewhere with a remortgage (or a remortgage ith them).

Their competitors want to win over your business so do offer some competitive products, often with free legals/free valuation etc..

You put a finger on convenience that product transfers offer - a lot of them do a Computer Valuation, require little paperwork and legals.

What i'd always recommend is to check the whole of the market, you ask your current lender what is on offer. Then challenge a mortgage broker to get you a better deal.

With both options in hand, you can take a view which you think is the best way forward.

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Hello Neil,

I am not very experienced myself (currently making my first BTL purchase) but here are my thoughts.

I have found that brokers will have access to different rates and deals which we don't have access to. So might have been work a call to a broker and seen what rates they are offering and do a comparison?

Also when you remortgaged with the same lender did they wave the mortgage fees that come with it? If so I would say that is a win rather than gaining a better rate as you are only fixed for 2 years and the mortgage fees can be costly.

I hope this helps.

Kind regards,

Jay

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