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||4.20% variable rate||£250 application fee|
|The overall cost for Comparison is||4.40% 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 (less the application fee) - can be added to loan|
|Valuation Fee||£499 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 £300,000|
|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.|
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.
Property is unacceptable if it is:
A shared ownership property