1.54% remortgage, low upfront costs, 125% rental cover non-capital raising
- Published: Tuesday 28 November, 2017
- Category: BTL mortgages
- By: Andrew Pelis
- Updated: Tuesday 06 February, 2018
This deal offers an outstanding buy to let remortgage rate at just 1.54% over two years, and the free standard valuation and free standard legals that come with it – plus the opportunity to add the lender fee to the loan means you can keep upfront costs to a minimum.
If you have been struggling to borrow the loan amount you require elsewhere and are not looking to raise capital, the 125% rental coverage available with this deal means the upper loan limit is particularly generous.
Flexibility on property type is another feature, subject to valuer comments. That means your flat with deck access, ex-local authority home or flat roof property (and more) will be considered by this lender.
PLUS, length of time in employment is not a factor if you are employed, for the self-employed 1 years SA302’s is accepted (where other lenders look for 2 or 3 years documentation).
1.54% 2-year fixed buy to let remortgage
|Product type||Initial rate||Max. Loan to Value||Product fee||*ERC's|
|2-year fixed||1.54%||60%||£1,495||For 2-years|
*Early Repayment Charge
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
If you are looking to remortgage on a pound for pound basis, i.e. you are looking to borrow the same amount on remortgage as the value of your existing mortgage, your rental income amounts may be under less pressure with this lender.
Rental coverage without capital raising is calculated at a rate of 125% (some other lenders require 145%). Mortgage affordability is calculated at a stressed rate of just 5.00%.
Capital raising is possible on the deal, but rental coverage becomes 145%, at a stressed rate of 5.50% and you must not be a portfolio landlord.
Number of properties:
The number of properties you can own will depend upon the purpose of your loan application.
If you are looking to remortgage on a pound for pound basis, you can own up to a maximum of seven mortgaged rental properties at completion of the deal.
If you are looking to raise capital, you can own a maximum of three mortgaged rental properties at completion of the deal.
This lender will accept your application if you operate an Assured Shorthold Tenancy of between six months and 12 months, which includes the Scottish or Northern Irish equivalent.
Your property can be let to a maximum of three tenants, including students, but they must have a single tenancy agreement, which covers the whole property.
If your property requires mandatory licensing as a House of Multiple Occupancy, this is not permitted.
Maximum number of applicants is two.
Minimum age 21 years old, maximum age 70 years old at application.
At least one applicant must have a minimum income of £25,000 per year.
You must live in the UK; any non-UK citizen must possess a permanent right to live in the UK.
You must own the residential property in which you live, or for joint applications, one of the applicants must own the residential property in which they live.
This lender will accept applications from a variety of applicants, but you must provide evidence of this and it must not comprise of rental income, acceptable sources of income:
• Bonus, commission and overtime
• Income from contracting
• State benefit
• Investment income
• Maintenance payments
• Income from fostering
Each will be subject to lender requirements, call us for details.
Mortgage term, value and location:
Your property must be in England, Wales, Scotland or Northern Ireland.
The minimum term of the mortgage is 5 years; the maximum term is 25 years.
The minimum value of the property is £75,000.
The minimum loan amount is £25,000; the maximum loan size is £750,000.
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.