3.19% 2-year LIBOR tracker buy-to-let mortgage, no arrangement fee
This product comes with a big financial enticement – there is no lender arrangement fee, which dramatically reduces upfront costs when compared to other, similar products.
Whether you have a standard buy-to-let property, you are investing through an SPV limited company or you have an HMO (House of Multiple Occupation), you can purchase or remortgage with this deal, up to a maximum loan to value of 75%.
There is no minimum income requirement for applicants, but you must have one year of taxable income that you can provide evidence of to the lender, should they request it.
Applicant age: Maximum age at application 80 years
Maximum term: 35 years (30 years for applicants aged 80 years)
Special Purpose Vehicle (SPV):
This product is available to limited companies set up solely as a Special Purpose Vehicle (SPV) - a company specifically created for the sole purpose of holding property. For further information on setting up an SPV limited company, see the section dedicated to this within our article “Pros and cons of buy to let through a limited company”
- Minimum loan size for an SPV is £25,001
- Maximum loan size is £500,000
Incorporation of the SPV can be set up on the same day as the mortgage application, with a maximum of four directors. All shareholders must be named on the mortgage; all will require personal guarantees and are personally liable.
Houses in Multiple Occupation (HMO)
HMO landlords must have two years of prior experience to qualify for this product and must have owned at least two buy-to-let properties before.
- Minimum loan size for an HMO is £25,001
- Maximum loan size for an HMO is £500,000
There must be no more than eight bedrooms let within the property.
- Minimum loan size for a standard buy-to-let is £50,000
- Maximum loan size for a standard buy-to-let is £500,000
There is no minimum income requirement for applicants, but you must have one year of taxable income that you can provide evidence of to the lender.
Bank statements are not required; however, the lender reserves the right to ask for bank statements in the event that proof of income is needed to approve the loan.
What is a LIBOR tracker rate?
LIBOR tracker rates are variable rates that are linked to LIBOR (London Interbank Offered Rate). These rates will change on a quarterly basis 12th March, 12th June, 12th September, 12th December. In the event that any of these dates occur on a non-working day, the LIBOR rate applies to the previous working day.
All of this lender’s LIBOR tracker products have a floor, so if LIBOR were to fall to 0.00% or less, the rate payable would be 0.00% in addition to the agreed set percentage above LIBOR. In other words, the rate payable will never go below 0.00% in additional to the percentage rate of the tracker mortgage.
For full criteria details and to discuss an application:
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.