5 year fixed rate buy to let
Fixed until 31/03/2024
Early Repayment Charges apply.
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Product key features
Who's the product for?
You must be aged 21 or over and the term can’t go past your 85th birthday. You must also earn at least £20,000 and own your own residential property. If you’re a self-employed professional landlord, we’ll accept rental income as your source of income.
Experienced landlords and self-employed
If you’ve currently got a buy to let property, or you’ve had one in the last 12 months we’ll happily accept you as an experienced landlord. For basic rate tax-payers, expected rental income must cover 125% of the mortgage payment amount on a rate of 5.5% and this increases to 130% of the mortgage payment amount on a rate of 5.5% for higher rate taxpayers.
You can capital raise additional funds for improving the property you’re buying or to increase your portfolio.
First time landlords
If you’re a first time landlord, your current home must be valued more than your proposed rental property. If you’re a basic rate tax-payer then rental income must cover 140% of the mortgage payment amount on a rate of 5.5%. For higher rate taxpayers, rental income coverage increases to 145% of the mortgage payment amount on a rate of 5.5%.
If your portfolio is less than four mortgaged buy to let properties when the mortgage completes then we can help. We don't have a limit on the overall portfolio size, but a maximum limit of £1million held on mortgage with us does apply.
The following application types aren’t accepted:
- Studio or one bedroom apartments;
- Local authority flats, flats in block of more than five storeys or flats above commercial premises;
- Applications from limited companies;
- Applications where you’ll occupy the property either now or in the future, will be let to a family member, or where up to 40% is occupied by the owner with the remainder let; and
- Multiple occupancy lets, DSS tenants, student let or sub-letting.
Product related fees
There is an arrangement fee of £999 that can be deducted from the mortgage amount or added to the amount borrowed.
Fees assisted legals: We'll cover the costs of any standard legal fees involved. You will have to pay any non-standard costs and you'll be advised if any should apply. If you choose to use our own conveyancers they'll only act for us and not for you during the remortgage transaction. If you need to add or remove a name on the mortgage you must appoint your own solicitors, and you'll receive £150 cashback towards your costs.
There is a minimum mortgage amount of £50,000 and a maximum mortgage amount of £350,000.
The maximum loan to value is 70%.
Mortgage repayment terms
You can repay your mortgage over a minimum of 5 years and a maximum of 35 years.
Early Repayment Charges
You can overpay up to 10% of the original mortgage amount each year.
Any overpayments taking you over this allowance will be subject to the full Early Repayment Charge. The Early Repayment Charge will be:
- 5% of the amount repaid until 31/03/2020;
- 4% of the amount repaid until 31/03/2021;
- 3% of the amount repaid until 31/03/2022;
- 2% of the amount repaid until 31/03/2023; and
- 1% of the amount repaid until 31/03/2024.
Mortgage tariff of charges
The mortgage tariff of charges details the various fees and charges that may apply during the term of your mortgage.
A mortgage of £240,000 payable over 21 years on a 3.19% fixed rate to 31 March 2024 and then our BTLVR, currently 5.74% for the remaining term would require an initial payment of £661.77 followed by 61 monthly payments of £640.66 and 190 monthly payments of £1,152.63.
The total amount payable would be £500,290.73 made up of the mortgage amount plus interest (£259,740.73) with a mortgage arrangement fee of £999, a mortgage valuation fee of £400, a telegraphic transfer fee of £25 and mortgage exit fees of £125.
The overall cost for comparison is 5.0% APRC representative.
Here to help you...
- Discuss your options
- Answer any of your buy to let questions
- Help you understand our rental income requirements
- Talk through our lending criteria
Your property may be repossessed if you do not keep up repayments on your mortgage.