Stunning 1.74% 2-year tracker with the option to switch!

Typical modern semi-detached street

This 1.74% 2-year tracker offers the reassuring option of switching to a fixed rate with no penalty, within the initial rate period of the deal.

There is no application fee with this product, which offers a modest upfront saving and you can use the deal to purchase a new property or remortgage an existing one.

This lender will consider applications irrespective of how many properties you already own, where some other lenders place a limit, so if you have a number of properties this deal will suit you on this point.

1.74% 2-year tracker buy-to-let mortgage. Suitable for portfolio landlords.

1.74% 2-year tracker. Suitable for portfolio landlords.
Product type Initial rate Max. Loan to Value Product fee ERC's
2-year tracker 1.74% 75% £1,995 For 2-years
2-year tracker 1.39% 65% £1,995 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.

The rules for portfolio landlords, with this lender

The new PRA rules mean that “portfolio” landlords with four or more properties, will have their rental income assessed on all existing properties within their portfolio.

With this lender, portfolio landlords who own up to 10 buy-to-let properties will need to be able to demonstrate that they can cover 145% of mortgage payments at an assumed rate of 4.50%. This rate rises to 5.50% if you own more than 10 properties.

Like-for-like remortgage applications (where there is no extra borrowing) for landlords owning less than 7 properties, will not be subject to portfolio landlord criteria with this lender.

If you have questions or concerns, call the team for help and guidance.

Income requirements

There is no minimum personal income requirement from this lender, but proof of personal income may be requested to support an application.

  • If you are employed or retired, you will need to provide a latest payslip or pension statement.
  • If you are self-employed, you will need to provide an SA302 form or provide an accountant’s reference.

Rental income will be subject to assessment; for lower rate taxpayers (paying 20% or less), the lender will require you to be able to cover just 125% of the mortgage repayments on an assumed rate of 4.99%. This is lower than many lenders would require. Please note that this only applies if you own less than four buy-to-let properties.

For higher rate tax payers (40% or more), your rental income will need to be able to cover 145% of your mortgage payments on an assumed rate of 4.99%.

Applicant criteria

Up to two applicants are permitted and both must have been UK residents for the previous three years.

The minimum applicant age is 21-years old and the maximum applicant age is 70 years-old. The maximum age at the end of the loan term is 105-years old, which is a relatively unusual feature amongst buy-to-let lenders.

The applicant(s) must have owned the property being remortgaged for at least 6 months prior to the application date.

Property location and type

This product is available for properties in England, Wales and mainland Scotland.

Other property types considered: This lender offers a degree of flexibility on property type that you may not enjoy with some other lenders. Please call for more details to see if your property qualifies.

Loan purpose

The lender will consider capital raised for non-business purposes including for deposit/purchase of a buy-to-let property and for non-structural home improvements.

Remortgaging your property may require proof of the current mortgage balance.

Houses of Multiple Occupation (HMOs) and tenancy types

Properties occupied by up to 4 tenants on a single Assured Shorthold Tenancy, such as a student lettings are eligible for this deal subject to wider criteria.

HMO applications must meet specific criteria, please call for more details.

Tenancy agreements

The lender will accept applications where tenants are on an Assured Shorthold Tenancy (or a Short Assured Tenancy in Scotland), for up to 36 months.

There is also flexibility if you operate a Non-Assured Shorthold Tenancy Agreement (which relates to Local authority/Housing Association Tenancy, Corporate Tenancies and private individuals where annual rent is over £100,000) and the lender will consider this if the agreement is up to 36 months.

Loan term, size and property value

The minimum property value is £50,000.

The minimum loan size is £25,001 and the maximum loan is £500,000 on a 75% LTV.

Loan term and repayments

The minimum term is 5 years, the maximum term is 35 years.

Early repayment charges apply, but you may make lump sum or regular overpayments of up to 10% of the initial mortgage balance within each 12-month period from the anniversary of completion, without incurring these charges.

This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.

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