Low upfront costs on 2.99% 5-year fixed remortgage
This deal could be the perfect catalyst for landlords wanting rate security, with low starting costs and an affordability calculation which offers more generous borrowing than with some other lenders.
This is a multi-saving deal as the lender offers no application fee and free standard valuation and legal fees.
No minimum level of income is required, other than rental income – an unusual aspect that may appeal to landlords who have owned a property for at least 6 months and have proven rental income.
The lender will consider a variety of property types including ex-local authority flats, or some non-standard construction types, which would be subject to the valuer’s notes, call your advisor to discuss your property.
Please note that this product is only available on a remortgage basis and not for HMOs, limited companies or expats.
2.99% fixed rate 5-year buy-to-let remortgage
|Product type||Initial rate||Max. Loan to Value||Arrangement fee||ERC's|
|5-year fixed||2.99%||65%||£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.
Compared to other lenders with similar products, this one has a more preferential affordability calculation, which means that you may be able to borrow more than you would elsewhere.
More detail on affordability:
The “stress” rate used to calculate affordability is 4.99% on this deal, whereas some other lenders use a rate of 5.5%. Given the amount you would need to demonstrate you could afford to repay is lower with this lender; you may be able to borrow more than elsewhere.
If you pay 20% tax or less, you will also need to be able to show you could cover 125% of the monthly mortgage repayment. If you pay 40% tax or more this rises to 145%.
There is no minimum personal income requirement; however, proof of personal income may be requested to support an application.
Acceptable income sources: Self-employed, employed, pension or rental income.
Proof of income:
Self-employed landlords should provide their Tax Calculation and Tax Year Overview (SA302). Where an SA302 is not available, an accountant’s reference may be acceptable.
Employed or retired landlords will need to provide their latest payslip or pension statement.
If you have no proof of income, the lender may accept your most recent 3-months bank statements.
Property location and term of loan
This product is available remortgage in England, Wales and mainland Scotland only.
Remortgages are only acceptable after the property has been owned for a minimum of six months.
The maximum term is 35-years, where other lenders may only offer a 25-year term.
Up to two applicants may be accepted per application.
The minimum age is 21-years old and the maximum age is 70-years old at application, which means that you can be up to 105-years old at the end of the mortgage term.
All applicants must be UK residents only and applicants who lived abroad in the last three years are not eligible.
Any foreign nationals applying must have been resident in the UK for at least three years, prior to application, must have the permanent right to reside and must possess a UK bank account.
Loan size and property value
The minimum loan size is £25,001 and maximum £1 million, based on a Loan to Value of 65%.
The minimum property value is £50,000.
Find out if you are eligible for this great remortgage deal:
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.