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.
Period of loan | Rate Payable | Additional Information |
---|---|---|
Month 1 onwards | 6.35% variable rate (0.55% over SBS Variable Base Rate - currently 5.80% - with a minimum SBS Variable Base Rate of 3.00%) | £250 application fee |
The overall cost for Comparison is | 6.80% APRC* | 1.5% arrangement fee (less the application fee) |
* Based a mortgage loan of £190,000 over a 25 year term
Application Fee | £250 (payable on application and non-refundable) |
Arrangement Fee | 1.5% of loan (less the application fee) - can be added to loan |
Valuation Fee | £525 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. (Some properties depending on type may require a specialist valuation regardless of their valuation and a fee quotation will be required). |
Maximum Loan to Value (%) | 60% |
Loan size | £50,000 to £500,000 |
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 £30,000 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 £500,000, please contact us to discuss.
Projected income is based on forecast from local rental lettings agency.
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.
Interest will be calculated daily on the outstanding balance of the term loan at 0.55% above our SBS Variable Base Rate which is currently 5.80% per annum. Our SBS Variable Base Rate is subject to fluctuation from time to time and may change at our discretion, however will never fall below 3.00%. Notification of changes to our SBS Variable Base Rate and any resulting change to the repayments due are made as soon as reasonable practicable following such a change.
Property is unacceptable if it is:
Carmarthen Branch
13-14 Lammas Street,
Carmarthen SA31 3AQ
Tel: 01267 611950
Fax: 01267 611951
Cowbridge Branch
75 High Street,
Cowbridge CF71 7AF
Tel: 01446 506000
Fax: 01446 506001
Mumbles Branch
496 Mumbles Road,
Swansea SA3 4BX
Tel: 01792 739200
Fax: 01792 739201
Swansea Branch
1-4 Portland Street,
Swansea SA1 3DH
Tel: 01792 739100
Fax: 01792 739101
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