To SVR or to not SVR?

He doesn’t want to be tied in to a new deal for too long and would like stability in his monthly payments. The property’s estimated value is £156,000 and he requires a loan of £75,000. He currently receives £700 per month in rent.

He is very keen to change deals quickly, so speed to offer is essential. What are his options?

Phil Rickards is head of sales at BM Solutions

If speed is an important element, one option could be to explore the deals available with Jack’s existing mortgage lender as an alternative to remortgaging. This can have the twofold benefit of removing the need for conveyancing costs and reducing some of the time hassle. Some lenders will reward the intermediary with a full procuration fee.

In the wider market, Jack’s loan-to-value (LTV) puts him in a very good position. His rental income of £700 per month means that he can qualify for a product at 125 per cent pay rate and the most competitive market deals.

BM Solutions has recently launched some new two and three-year fixed rates that would suit Jack, provide him with the stability that he’s looking for and would offer a much better option than standard variable rate. He could take a two-year fix at 5.99 per cent with an arrangement fee of 2 per cent. Early repayment charges apply at 3 per cent for each year.

Nick Blunt is head of business partner development at Mortgages for Business

Jack is in the strong position of having a low LTV ratio and a strong rental income. This is a huge benefit in a market where the majority of mortgage lenders are looking to tighten their criteria.

Although it is understandable that Jack would not want to tie himself to a mortgage arrangement for too long in the current uncertain climate, he must be mindful that short-term fixed products will carry bigger arrangement fees. Therefore, in the long run he would not necessarily save himself any money if he opts for a two or three-year fixed rate product against a discounted product option.

However, given the client’s wishes for a competitive deal and quick delivery, we would recommend looking at BM Solutions’ fixed rate buy-to-let mortgage products for a steady rate and speed of offer, although we do have other low rates available, which are exclusive to Mortgages for Business.

Scott Richford is product marketing at Mortgage Talk

Most importantly, Jack will need to decide on the duration of fixed term that he will be comfortable with. Because rates have risen recently on buy-to-let deals, there is a strong argument to say that he should make a decision sooner rather than later.

At the moment, most indications are that the market will remain in this position for some time to come, with rates unlikely to drop again while upward pressure remains in this sector as well as in non-conforming.

The best deal currently available is with West Bromwich Building Society, at a fixed rate of 5.49 per cent until 31 March 2010. Additionally, Jack would have an upfront valuation fee of £300, together with an arrangement fee of £1,125, which can be added to the mortgage.

This product would give him the stability that he requires for his monthly outgoings, without being tied into a five, seven, or even 10-year deal, when the market is in a state of flux.