5-year fixed rate dropped by 2%, to just 2.98%
- Published: Tuesday 07 March, 2017
- Category: BTL mortgages
- By: Nicola Eaton
- Updated: Wednesday 08 March, 2017
Released on 7th March 2017 this phenomenal 5-year buy-to-let mortgage rate drop is a real game changer.
If you are looking for certainty in an uncertain world of Brexit, Trump, the failing Greek economy, a stalling UK economy and punishing tax changes for landlords, this could be the certainty and good news you have been hoping for.
A fixed low rate of 2.98% per annum for five years could shelter you from a great deal of unwelcome financial turbulence anticipated in the short-term, it can certainly offer the security of a very favourable rate and monthly repayment amount.
The criteria on offer with this product means that it is not just the rate which is attractive.
Reduction of product fee
For starters the flat fee of 2.5% has also been reduced to 2% of the loan amount and you can borrow up to 75% loan to value (LTV).
2.98% 5-year fixed rate buy-to-let mortgage
|Product type||Initial rate||Maximum LTV*||Product fee||Early repayment charge|
|5-year fixed||2.98%||75%||2.0%||For 5 years|
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
* Loan to Value
Looking for generous maximum borrowing?
The mortgage affordability and rental coverage calculations for this product assume a 2% annual increase in rent, which means that you may be able to borrow more than you anticipate based on other lenders calculations.
We do not know of another lender who offers this.
Mortgage affordability calculations are in place to assess whether a change in your financial circumstances would change your ability to repay your mortgage loan.
Rental coverage calculations assess whether the amount you are charging your tenant each month covers the mortgage repayment amount; lenders usually require you to cover more than the monthly mortgage repayment, again to protect you from financial vulnerability, if the mortgage rate were to change.
Free legal cover for remortgage clients
If you wish to replace an existing buy-to-let mortgage with this product, there is more good news for you, the lender is offering free standard legal cover from its preferred conveyancing partner.
Good news if your properties are in close proximity of one another
This lender will accept applications from landlords with properties next-door or adjacent to one another, or, in the case of flats, above or below each other, which can be a stumbling block with some other lenders.
Credit problems considered by this lender
Sometimes blips on your credit history can affect your ability to borrow, but this lender has a much more flexible approach.
Mortgage or secured loan arrears: You must not have had any arrears of this type in the last 3 months, but if they were longer than 3 months ago you may be eligible. You must not have more than 1 month’s arrears of this type in the last 12 months and no more than 2 month’s arrears in the last 24 months. If you have arrears of this type which occurred over 24 months ago your application may be considered.
Unsecured loan arrears: You must not have had any arrears of this type in the last 3 months and no more than 2 months’ arrears in the last 24 months. Arrears which occurred over 24 months ago may be considered.
County Court Judgements (CCJ) or Sheriff Court Decrees: You must not have had either of these registered against you in the last 3 years. If you have had a CCJ registered over 3 years ago but it was only satisfied in the last 3 years and the total balance does not exceed £500 you may still be eligible with this lender.
Defaults: You must not have a default registered in your name within the last 12 months in order to be considered by this lender. If you have had one default registered between 13-36 month ago you may be eligible, but the default must have been satisfied and the value must not have been in excess of £300. Please note that in this instance your application will have to go through a manual assessment by the lender. More than one default registered in the last 36 months is not accepted.
Payday loans: You must not have had a payday loan within 6 months of an application with this lender.
For a full understanding of the credit issues accepted by this lender, speak to our advisors to understand whether you qualify.
Landlords aged up to 79 years are welcomed
Landlords up to 79 years of age at application (and up to 85 years old at the end of the term) are welcome to apply for this buy-to-let mortgage deal.
Over fifty percent of the lenders we work with look for a minimum personal income from an applicant before they will consider offering a mortgage. However, if you have demonstrable experience as a landlord, this lender does not impose a minimum income threshold.
Is your property inherited, or a Bridging loan purchase?
Remortgages within the first six months of the original purchase date of the property are not normally accepted by this lender.
If, however, you have become the owner of the property having inherited it, you can remortgage with this lender from day one of ownership.
If you have bought your property with bridging finance from another lender you can remortgage using this product subject to the following:
If you have owned the property for less than 6 months: The loan amount will be restricted to the amount required to repay the existing finance plus 100% of the documented improvement cost and you must have owned the property for a minimum of 1 month.
If you have owned the property for more than 6 months: You may be able to raise capital in excess of the amount required to redeem the bridging finance, based on any enhanced value of the property.
Apply today with our experts
If you feel that you would benefit from the fixed repayments and low rate available with this deal, ensure you don’t miss out. Lenders can change their products at any time, and remember a mortgage offer is valid for approximately 3 months.
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.