5-year fixed rate Buy-to-let at 2.65% on a 70% Loan To Value
- Published: Tuesday 24 October, 2017
- Category: BTL mortgages
- By: Andrew Pelis
- Updated: Thursday 11 January, 2018
Set aside all talk of interest rates for 5 years with a fixed rate deal offering flexibility, benefits and a competitive rate.
The lender will consider applications from portfolio landlords (owning between 4 and 10 buy-to-let properties), as well as Houses of Multiple Occupancy (up to 5 bedrooms).
Own a property that is a little out of the ordinary? This lender will consider ex-Local Authority homes, new builds, property close to commercial buildings and unusual constructions. Call for more details.
This deal is not open to expats or limited companies.
2.65% 5-year fixed BTL mortgage or remortgage on a 70% LTV!
|Product type||Initial rate||Max. Loan to Value||Product fee||*ERC's|
|5-year fixed||2.65%||70%||£1,999||For 5-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.
This lender will consider applications from portfolio landlords who own between 4 and 10 properties. They will consider more than 10 properties, if some are not mortgaged.
Houses of Multiple Occupation (HMO):
You may own an HMO with up to a maximum of 5 bedrooms. The tenancy agreement can be on an individual basis for tenants, as an Assured Shorthold Tenancy agreement covering their room and shared facilities in the property, or part of a joint Assured Shorthold Tenancy agreement covering the entire property.
You will also be required to provide evidence of any licensing requirements in relation to the property and its location.
If you are looking to remortgage, you must have owned the property for at least 6 months.
You can apply as an individual or on a joint application, with a maximum of 4 individuals, but all applicants must be close family members.
In most cases, you will need to demonstrate:
- That you are a UK tax payer;
- That you have lived in the UK for at least the last 2 years;
Non-UK nationals may also apply but will need to provide a valid EU passport or a permanent right to reside in the UK in the case of non-EU Nationals.
The main applicant must be an existing residential homeowner or occupier, and will need to provide evidence that they have a regular income.
The minimum age is 18 years-old; the maximum age at the end of the mortgage term is 85 years-old.
This lender will also consider ‘lending into retirement’ up to the age of 70 years-old on primary residential properties (but the lender offers some flexibility on this age, depending on the mortgage type), a situation which occurs when the mortgage term stretches beyond the applicant’s retirement age.
The lender will accept applications from professional landlords, whose sole source of income is from rental income.
The lender will accept net rental income as evidence, but this must cover a period of at least 24 months and appear on an SA302.
You must in permanent full or part-time employment and you must have been in continuous employment for the prior 6 months.
The lender will also consider income from secondary employment when you have been in a permanent position for a minimum of 6 months. You will need to provide details of your income, the length of employment, the type of work undertaken and the amount of hours you work each week.
Contractors are accepted, subject to criteria, speak to your advisor.
Your gross annual income must be more than £50,000 if you are a day rate contractor. There is no minimum income requirement if you are working on a fixed contract.
If you are working on a fixed term contract, you will need to have been on a continual 12 month contract in the same role. You will also need to provide evidence that you have the ability or skills to continue contractual work of this nature in the future.
The lender will want to see proof of your last 12 months of contracts, documenting your ability to re-contract and you will also need to supply your Curriculum Vitae, along with the last 3 months business bank statements.
When submitting your application, you should clarify that your employment status is ‘Self-Employed’ and highlighted as ‘Contractor’ in the additional notes section.
Directors of Limited Companies:
If you are a director and own less than 25% of the shares in a limited company, this lender will classify you as employed.
You will need to demonstrate your income in payslips and dividends.
In cases where you own more than 25% of the business, you will be considered self-employed and in addition to providing evidence through wage slips and dividends, you will also need to provide a full set of financial accounts.
Sole Traders or Partnerships:
If you are operating as a sole trader or in a partnership, the lender will assess your earnings on either net profit or your personal share of total profits. You will need to provide a full set of financial accounts.
Self-Employed (including Sole Traders and Partnerships):
If your status is self-employed and you have been trading for a minimum of 3 years, you will need to provide accounts or a fully completed Accountants Certificate for the full 3 years via an SA302.
In cases where you have not traded for 3 years, you will need to provide a minimum of 2 years accounts through an SA302 form or Tax Year Overview.
The property must be located in England, Wales, Northern Ireland or mainland Scotland.
The lender provides some flexibility when it comes to property type, so if your investment is a little out of the ordinary, you might still be able to apply, in the following cases:
- For an ex-Local Authority property, which meets construction and ownership criteria and has no more than 4 floors and no balcony access. There is some additional flexibility on London locations. Call for more details.
- Leasehold flats or maisonettes which have an unexpired lease of at least 85 years at the beginning of the mortgage, subject to meeting size requirements, having access to a lift (if the property is located above the fourth floor) and satisfying ground rent terms.
- Flying freehold where a small amount of the property lies above another and a valuer confirms that its re-saleability is not compromised.
- Properties situated above food outlets, subject to specific criteria, please call for more information.
- New build properties, subject to meeting lender criteria, please call for further details.
- Converted buildings, subject to evaluation and evidence of correct planning permissions.
The lender defines a “standard construction” as one meeting the following specifications:
Walls must be solid, with a minimum width of 230mm or a cavity of a minimum of 280mm. They must be brick-built, using either natural stone, reconstituted stone, concrete block, cob or flint.
A Pitched Roof should be typically built of timber, however the lender will also consider incidences where a steel frame has been covered in slate, thatch, tile or copper, or where a modern lightweight ‘mock slate’ has been applied.
Flat roofs may also be acceptable when covered in asphalt, felt, copper, lead or zinc.
On Non-Standard Constructions the lender will in some circumstances consider applications when the property is steel framed, made of pre-fabricated reinforced concrete or of an unusual construction. Please call for more information.
Loan term and loan size
The minimum loan term is 5 years.
The maximum loan term is 40 years.
The minimum property valuation is £50,000.
The maximum loan size is £500,000.
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.