Who's the product for?

You must be aged 21 or over and the term can’t go past your 85^th 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 related fees

There is an arrangement fee of £1,499. This can be paid upfront by deducting the fee from the amount you borrow. Alternatively, you can add the fee to the mortgage amount. If you add the arrangement fee to your mortgage, you will pay interest on the fee at the same rate as your mortgage.

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 30 September 2021;
• 3% of the amount repaid until 30 September 2022;
• 2% of the amount repaid until 30 September 2023; and
• 1% of the amount repaid until 30 September 2024.

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.

Representative example

A mortgage of £100,000 payable over 25 years on a five year fixed rate until 30 September 2024, currently 2.69% and then our BTLVR, currently 5.44% for the remaining term would require an initial payment of £235.03 followed by 37 monthly payments of £227.53 and 262 monthly payments of £460.14.

The total amount payable would be £230,859.32 made up of the mortgage amount plus interest (£130,709.32) with an arrangement fee of £1,499, 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