3-year 3.59% fixed rate for specialist buy-to-let
- Published: Tuesday 17 October, 2017
- Category: BTL mortgages
- By: Andrew Pelis
- Updated: Thursday 11 January, 2018
Take the uncertainty of interest rates out of your mind for the next 3 years on this purchase or remortgage deal.
The lender will consider applications for specialist borrowing, including from limited companies, on Houses of Multiple Occupancy and Multi-Unit Blocks.
Own a portfolio of properties? With this product the lender sets no limits on the number of properties you can own, whilst also offering some flexibility around the type of property. Call us for more details.
This product is applicable to some expats living on the Channel Islands, depending on circumstances. Please call for more information.
3.59% 3-year fixed buy-to-let mortgage or remortgage
|Product type||Initial rate||Max. Loan to Value||Product fee||*ERC's|
|3-year fixed||3.59%||75%||1.5%||For 3-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.
Landlords owning multiple properties
If you have a House in Multiple Occupation (HMO) or student let, the lender will consider your application on up to 10 rooms and you have experience as an HMO landlord. The lender will also consider applications on multi-unit blocks of up to 5 units under one freehold on referral.
All HMO purchases must have a licence in place or must have submitted a licence application on completion, if required. All HMO remortgages must have a licence in place on completion, if required.
If you own four or more properties, you will need to provide additional information at the application stage.
This will include the following:
- Details of your wider buy to let portfolio
- Business Plans
- Assets and Liabilities statement
- Cash flow statement
With this lender, mortgage affordability testing is a bespoke process.
The minimum rental income requirement and maximum loan amount will depend on the experience of the landlord and the type of transaction being applied for.
There is no minimum income requirement, but the lender will require evidence of earnings as set out below, according to status:
You must be able to demonstrate 3 years of trading history and provide your latest accounts or SA302.
In the case of sole traders and partnerships, the lender will want to look at net profit before tax, based on accounts for the last three years.
For limited company directors owning a shareholding more than 25%, income is assessed based on director’s remuneration and dividends.
Applications from limited companies set up as an SPV (Special Purpose Vehicle) are accepted, this means that the business is non-trading and limited to holding property only.
All directors are required to sign a personal guarantee and take independent legal advice (maximum four persons).
Call us for more details on limited company criteria.
The lender will consider applications where there is a history of some types of adverse credit, outlined below; acceptance of applications of this type will be subject to underwriting.
*CCJ/defaults over £300 in aggregate: registered over 3 years ago and satisfied prior to your application, or, satisfied over 12 months prior to your application (regardless of when registered).
*CCJ/defaults under £300 in aggregate: satisfied prior to application.
IVA (Individual Voluntary Agreement)/Bankruptcy: If these were discharged over three years ago, you have no residual debt remaining and have rationale to support your application it may be accepted, but will be subject to the discretion of the lenders underwriters.
Evidence that *CCJ’s (County Court Judgements) or defaults have been satisfied will need to be supplied, along with an explanation of the debt.
Arrears in the last 12 months: are NOT accepted.
A maximum of 4 applicants are permitted.
First time landlords are accepted.
First-time buyers are not permitted, you must have owned property previously, whether residential or buy-to-let.
The minimum applicant age is 25 years-old, maximum age is 85 years-old at the end of the mortgage term.
The minimum loan size is £75,000; maximum is 3 million, with the opportunity to discuss higher levels of borrowing in special circumstances.
The minimum mortgage term is 5 years, the maximum term is 35 years.
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.