1-year fixed rate buy-to-let mortgage from 2.44%
- Published: Tuesday 02 May, 2017
- Category: BTL mortgages
- By: Matthew Bone
- Updated: Wednesday 10 May, 2017
With the buy-to-let market going through a period of uncertainty due to April’s tax relief reforms beginning to bite, the election machine kicking into gear and Brexit continuing its onward charge, you may not be sure if you should stick or twist when it comes to your portfolio.
Whether you are a seasoned veteran of buy-to-let, or a newcomer to the market, this 1-year fixed rate deal offers you a good balance between flexibility and stability, enabling you to see how the market evolves over the coming year and maintain a stable monthly repayment amount, without locking you in to a long-term initial period.
1-year fixed rate buy-to-let mortgages
|Product type||Initial rate||Max LTV*||Completion fee||ERC's**|
|1-year fixed||2.44%||65%||£995||For 1 year|
|1-year fixed||3.04%||75%||£995||For 1 year|
|1-year fixed||3.39%||80%||£995||For 1 year|
*Loan to Value **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.
A solution for accidental landlords
If you have become an ‘accidental’ landlord through inheritance of a property, or from moving in with a partner, this product could be of benefit.
The initial period is just one year in duration and the rate is fixed, which means that:
1) you have the benefit of knowing exactly what your monthly repayments will be
2) you only have to wait a year to sell the property without an exit penalty, if buy-to-let isn’t for you
3) you only have to wait a year to switch to a longer term deal if you are enjoying success as a landlord
A solution for experienced landlords
There is a lot of change afoot in the market and in the wider political environment at present.
If the uncertainty of this is clouding your confidence as to the direction you should take with your investment strategy, you may appreciate the opportunity to remortgage to a short-term product whilst gathering more information, especially the outcome of the general election.
Favourable rental calculations
The lender behind this mortgage has recently overhauled their rental calculations, which now take into consideration the following: an applicant’s tax bands, the property’s location and value, and whether ground rent or service charges are applicable.
The rental calculation starts from 125% for lower rate taxpayers across England and Wales and from 135% for higher and additional taxpayers. With a lower rental calculation, you have the potential to obtain higher levels of borrowing on your mortgage. For more information on this, please speak to one of our advisors.
Low flat-rate fee
This product benefits from having a low flat-rate completion fee of £995, (as opposed to a percentage of the loan size) which is particularly cost-effective if you are looking to borrow larger amounts.
As is common with mortgage products you can add this fee to the loan to minimise upfront costs.
Please be aware though that adding the fee to your loan can impact the total repayment amount of the mortgage.
Avoiding a lenders standard variable rate
If you are coming to the end of your initial rate period and will otherwise revert to your lenders standard variable rate; but are unsure of your long-term buy-to-let strategy, then this product could help you potentially reduce your monthly outgoings, while you take stock of your available options.
Multiple incomes accepted
Although this lender does have a minimum income requirement of £25,000, they will allow income from a second job to be combined with your primary salary in order to meet this threshold which other lenders do not. Please note you must have held the second job for 12 months or more.
£1 valuation fee
This lender offers a valuation service on both purchase and remortgaging for just £1.00. It must be carried out by a valuer from the lender’s approved panel.
Mortgage criteria summary
- Available for properties in England and Wales
- All applicants must be an existing home owner for the past 12 months
- First time landlords welcome
- Maximum loan up to 75% LTV £1 million, over 75% LTV is £500,000
- Maximum age at loan end is 80 years’ old
- Minimum combined income £25,000 (accepts income from 2 sources)
- Not available to ex-pats or limited companies
Apply for this rate today
If this deal could be beneficial to your investment strategy, speak with one of our team to discuss your eligibility:
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.