Buy to Let 70 Mortgage (BTL70)
This mortgage allows you to purchase, remortgage from another lender and raise capital funds on a residential property to let. The maximum Loan to Value (LTV) is the amount of a mortgage expressed as a percentage of the purchase price or valuation, whichever is the lower.
If you fail to keep up with payments on your mortgage a ‘receiver of rent’ may be appointed and / or your rental property may be repossessed. Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home.
|Period of loan||Rate Payable||Additional Information|
|Month 1 onwards||3.95% variable rate||£250 application fee|
|The overall cost for Comparison is||4.10% APRC*||1.5% arrangement fee (less the application fee)|
* Based a mortgage loan of £185,000 over a 25 year term
|Application Fee||£250 (payable on application and non-refundable)|
|Arrangement Fee||1.5% of loan – can be added to loan if total borrowing below maximum LTV|
|Valuation Fee||£450 for properties up to £500,000 in Wales (subject to confirmation from the valuer) and by request for all properties in England / properties over £500,000 in Wales|
|Maximum Loan to Value (%)||70%|
|Loan size||£50,000 to £250,000|
|Repayment Type||Capital and Interest only / Interest Only. For those loans on an interest only basis, all borrowers will be required to provide evidence of how they intend to repay their interest only loan.|
|Early Repayment Charge||During the first three years, an early repayment charge of 1% of the loan amount is payable. After this period, no early repayment charges apply.|
|Overpayments||Regular overpayments are permitted. Regular overpayments are amounts collected with, in addition to, your monthly mortgage payments. You may make capital repayments without an early repayment charge being levied as long as the mortgage is not redeemed in full (a minimum balance of £500 must be kept on the account) within the 3 year early repayment period. Following receipt of a lump sum payment, the amount that you owe, and so the amount of interest you pay is reduced immediately.|
Please note that our Buy to Let mortgages are available to existing property owners who would like to purchase/remortgage a property which is to be let.
The rental calculation for a Buy to Let mortgage is based on the actual or expected rental. Rent must cover 125% of the ‘stressed mortgage payments’ for basic rate tax payers, or 145% for higher rate tax payers. The stressed mortgage payment is based on the product rate +2% or 5.5% whichever is higher. Personal income can be considered when assessing affordability if rental income is not enough.
Main applicant must be a property owner, earn at least £25,000 per annum and income to be derived from a source other than rent.
Private individuals only (No limited company lending).
Maximum age at end of loan for main applicant = 75.
Minimum property value = £75,000.
These mortgages are not portable and you will not be able to transfer these product terms.
For house purchase, the maximum Loan to Value is the amount of a mortgage loan expressed as a percentage of the purchase price or valuation whichever is the lower.
For loans above £250,000, please contact us to discuss.
Projected income is based on forecast from local rental lettings agency.
Mortgage interest is calculated on a daily basis.
Our Mortgage Services Tariff gives details of the charges payable in connection with mortgage applications and additional administration following completion of your loan.
Loans are available to persons aged 18 or over and are subject to status and valuation of a suitable property, over which security will be required. All lending will be subject to the financial standing of the applicant(s).
The Buy to Let property must meet EPC Regulations effective 1 April, 2018. I.e. a minimum band rating of A-E.
Property is unacceptable if it is:
- A shared ownership property
You can download any of our application forms or related documentation here. If you need any help with completing one please give us a ring on 01792 739100 where one of our team will be happy to help you.