arrangement fee
no fee
This can be paid up-front or added to the mortgage. Bear in mind that if you add the fee to your mortgage, you'll pay interest on it at the same rate as your mortgage and as a result will pay more interest over the term of your mortgage.
booking fee
no fee
This fee must be paid when you apply for your mortgage.
initial rate
2.69%
2.69% fixed until 31 March 2025
followed by our BTLVR
5.44%
Our Buy To Let Variable Rate (or BTLVR) reflects our cost of lending using a number of factors, including the Bank of England Base Rate. As the BTLVR is a variable rate it can change at any time.
the overall cost for comparison is
5.0%
APRC
Fixed until 31/03/2025 . Early Repayment Charges apply. . This product may be withdrawn at any time.
Product key features
- Who's the product for?
- Product incentives
- Mortgage amounts
- Mortgage repayment terms
- Early Repayment Charges
- Mortgage tariff of charges
- Representative example
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%.
Portfolio size
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.
General exclusions
The following application types aren’t accepted:
- Local authority flats or maisonettes;
- Flats or apartments in block of more than five storeys;
- Freehold flats or maisonettes;
- Any properties with a restrictive covenant;
- Self-build properties;
- Second home;
- Shared ownership or shared equity;
- Applications from limited companies; and
- Multiple occupancy lets, student let or sub-letting.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Product incentives
Free standard valuation: We'll cover the cost of a standard valuation on a property valued up to £400,000. Properties valued over £400,000 will receive a contribution of £350 towards the cost.
Fees assisted legals: You have the choice of using our solicitors, where we'll cover the cost of any standard legal fees, or receiving £250 cashback towards your own solicitor's costs. You'll be advised of any non-standard costs that will apply. If you choose to use our solicitors, they'll only act for us and won't provide you with independent advice regarding the mortgage transaction.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Mortgage amounts
There is a minimum mortgage amount of £100,000.
The maximum loan amount on this product is tiered by loan to value:
- Up to 50% LTV: a maximum loan amount of £950,000
- Up to 60% LTV: a maximum loan amount of £700,000
- Up to 70% LTV: a maximum loan amount of £500,000
The maximum loan to value available is 70%.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Mortgage repayment terms
You can repay your mortgage over a minimum of 5 years and a maximum of 35 years.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Early Repayment Charges
Early Repayment Charges apply during the product term. Up to 10% of the original mortgage amount can be overpaid each year without charge, however, if the mortgage is redeemed or switched to another product during the product term, then the Early Repayment Charge will apply.
The Early Repayment Charge will be:
- 4% of the amount repaid until 31 March 2022;
- 3% of the amount repaid until 31 March 2023;
- 2% of the amount repaid until 31 March 2024; and
- 1% of the amount repaid until 31 March 2025.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Mortgage tariff of charges
The mortgage tariff of charges details the various fees and charges that may apply during the term of your mortgage.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Representative example
A mortgage of £146,000 payable over 25 years on a fixed rate until 31 March 2025, currently 2.69% and then our BTLVR, currently 5.44% for the remaining term would require an initial payment of £338.06 followed by 37 monthly payments of £327.28 and 262 monthly payments of £661.77.
The total amount payable would be £331,981.16 made up of the mortgage amount plus interest (£185,831.16), a telegraphic transfer fee of £25 and mortgage exit fees of £125.
The overall cost for comparison is 5.0% APRC representative.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Tools to get you started
tools and guides
FAQs
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- Can I make overpayments on my mortgage?
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If your mortgage is with us, you can make a mortgage overpayment by cheque, or electronically by BACS transfer. If you need more information, please call us on 0121 557 2551 or complete our online contact us form.
What is a mortgage overpayment?
A mortgage overpayment is where you choose to pay back more than your committed monthly repayments. This can be as and when you wish, or a regular overpayment.Can I make mortgage overpayments?
You should check your mortgage product terms and conditions before you make an overpayment. Many mortgages will have Early Repayment Charges. This means that the lender will limit the amount you are able to overpay, if you exceed this limit you may incur Early Repayment Charges.Benefits of mortgage overpayments
Making overpayments can help to reduce the amount of interest you pay back on your mortgage. It can also help you to pay your mortgage off sooner, so become mortgage free quicker!While you can do this by reducing your mortgage term, an overpayment is not a set commitment, meaning that if you decide you wish to just pay your normal monthly repayment for a period, this is ok. However, if you lower your mortgage term the higher monthly repayment will be a commitment and must be paid regardless.
Calculating a mortgage overpayment
If you would like to know how much you can overpay on your mortgage, you can call your mortgage lender for an exact calculation.However, if you wish to work this out yourself, you will need information regarding the fee structuring. For example, if you are able to overpay 10% of the amount owed each year, you will need to multiply the amount you owe by 0.1.
Examples of mortgage overpayments
Examples of calculating your mortgage overpayment are below:You owe £100,000, you are able to overpay 10%. £100,000 x 0.1 = £10,000
You owe £100,000, you are able to overpay 5%. £100,000 x 0.05 = £5,000You owe £250,000, you are able to overpay 10%. £250,000 x 0.1 = £25,000
You owe £250,000, you are able to overpay 5%. £250,000 x 0.05 = £12,500close
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- What documents do you need to apply for a mortgage?
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To complete a mortgage application you will need:
- Most recent P60;
- Latest two months, salary fed bank statements;
- Latest two months pay slips;
- Last two years’ SA302s or limited company accounts (if self-employed) along with last two tax year overviews;
- Accountants details (if self-employed);
- Acceptable proof of address and personal identification;
- Home improvement quotations (if applying for additional borrowing or remortgaging with additional borrowing included);
- Coal Authority Report (for properties with a coal mine);
- Offer notice (if you are purchasing under the Right to Buy scheme);
- Employers contact details;
- Proof of deposit;
- Rent statement and landlords contact details (if renting);
- Solicitors contact details;
- Estate agents contact details; and
- Tenancy Agreements for any buy to let properties you have.
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- How much is a valuation fee?
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A standard valuation report is used to calculate how much we will lend you. This is separate from any valuation or survey of the property you might want to commission for your own use. There are other homebuyers or structural survey options available to you at additional cost.
Some of our mortgages offer free valuations and the product pages will tell you if this is the case. Our mortgage valuation charges page will provide details of the costs incurred for both a standard valuation and the more detailed homebuyers report.
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- How long is my mortgage offer valid?
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Once we have made an offer to you, this will be valid for 6 months.
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- Can I rent out my property?
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If you have a mortgage with us and would like to rent out your property you will need to notify us. Please call us on 0121 557 2551 or fill in our online contact us form.
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Laurence, our Mortgage Adviser is here to help
0121 521 4000*
Our lines are open:
*Calls from landlines are charged at the standard rate. Calls from mobiles may vary.
| Monday - Tuesday | 09:00 - 17:00 |
| Wednesday | 09:30 - 17:00 |
| Thursday - Friday | 09:00 - 17:00 |
| Saturday | 09:00 - 12:00 |
| Sunday | Closed |
Your property may be repossessed if you do not keep up repayments on your mortgage.