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Buy to Let mortgages from the friendlier face of finance

Full Terms and Conditions relating to our Buy to Let 2 Year Fixed Rate Mortgage Product - up to 65% Loan to Value

Criteria:

  • New customers for the purchase or re-mortgage of their investment property only.
  • Applicant(s) must have a minimum combined income of £20,000 and must own their own residential property or receive sufficient income to support the loan based on standard income multiples (confirmation of income will be required).
  • Applicants must be at least 21 years of age and be UK residents.
  • Houses and flats (subject to lending policy criteria, please ask for further details) within England (including Isle of Wight) and Wales are an accepted type of security.  For a list of unacceptable property types please speak to your mortgage adviser.
  • Product Availability: This product may be withdrawn with little or no notice.
    To ensure funds are reserved it is essential that a Buy to Let mortgage application form is fully completed and submitted and that any applicable application fee is paid.
  • Purchase/Re-mortgage will not be acceptable unless the owner/vendor has been registered with the Land Registry for at least six months.
  • Property Insurance: Prior to completion, the Society will need to be satisfied that the insurance cover meets its minimum requirements. Full details of minimum requirements are available on request.

Interest Rate:

  • 1.84% fixed until 28 February 2021.
  • Completion must take place on or before 28 February 2019.  Please note that if your mortgage does not complete by the 28 February 2019, you will not benefit from the fixed rate period quoted.
  • At the end of the fixed rate period, the rate will revert to the Society's SVR applicable at that time which will not fall below 3% at any time during the life of the mortgage.
  • As interest is calculated on a daily basis, any overpayments you make will immediately reduce the amount you owe and also the amount of interest you pay.

Loan:

  • Minimum loan £50,000.
  • Maximum loan £1,000,000.
  • Minimum property value £75,000.
  • Maximum loan to value 65% (including any fees added to the loan).  Loan to value is your total mortgage amount divided by the purchase price or valuation, whichever is lower.

Fees/Charges:

  • An Application fee of £100 is payable upfront, which is non-refundable, for Product Transfers only this can be added to the mortgage loan if required. You must positively elect to add the fee to the mortgage loan. Interest will be charged, at the applicable rate, on all fees added to the loan.
  • A product fee of £895 is payable for a non-portfolio Buy to let application.  This can either be paid upfront or be added to the loan, if required.  You must positively elect to add the fee to the mortgage loan.  Interest will be charged, at the applicable rate, on fees added to the loan.
  • A product fee of £1,895 is payable for a portfolio Buy to Let application.  This can either be paid upfront or be added to the loan, if required.  You must positively elect to add the fee to the mortgage loan.  Interest will be charged, at the applicable rate, on fees added to the loan.
  • Free standard mortgage valuation for all purchase, remortgage or additional borrowing applications.  If a valuation is required in connection with a product transfer then a valuation fee will be payable (per scale).
  • Early Repayment Charge:  If the mortgage is repaid either in whole or in part, or is transferred to an alternative product, before 28 February 2021 then an early repayment charge will apply.  This charge is based on; 2% of the outstanding loan amount if the mortgage is repaid before 28 February 2020 or 1% of the outstanding loan if the mortgage is repaid before 28 February 2021.  Capital repayments, which are not subject to the above early repayment charge, can be made of up to 10% of the original loan amount (original transfer amount if variation) in any 12 month period from the date of completion.
  • A Mortgage Exit Fee is payable at the prevailing rate on full repayment (redemption) of your mortgage.

Property Rental:

  • The property must be let on an Assured Shorthold Tenancy Agreement for a maximum period of 12 months.
  • Sale and rent back agreements are not acceptable.
  • Unacceptable tenancy lets are houses in multiple occupation (HMO’s) and accommodation for (Department of Works & Pensions (DWP)) and/or student tenants.Maximum portfolio – 15 (with or without mortgages) and a maximum of 4 Buy To Let properties and 1 residential property under mortgage with Leek United Building Society.
  • Rental income must be at least 140% of mortgage interest calculated at an interest rate of 5.5% for a purchase or re-mortgage with additional borrowing.
  • For a re-mortgage with no additional borrowing rental income must be at least 125% of mortgage interest calculated at an interest rate of 5.5%.

Deposit Protection Scheme:

  • If a deposit is to be paid by the tenant then you must sign up to one of the 3 schemes listed below:-
    - Deposit Protection Service (DPS)
    - Tenancy Deposit Solutions Ltd (TDSL)
    - Tenancy Deposit Scheme (TDS)

Representative Example (based on the purchase of an Investment property):

The Annual Percentage Rate of Interest (APR) varies with the circumstances of each mortgage.  Here is a representative example of a loan secured on your investment property:    A mortgage of £135,000 on a capital and interest (repayment) basis payable over 25 years initially on a fixed rate of 1.84% for 2 years and then on our Standard Variable Rate (SVR) of 5.69% (variable) for the remaining 23 years you would pay:

1 monthly repayment of £6.81, followed by
36 monthly repayments of £560.92, followed by
264 monthly repayments of £817.98.

The total amount payable would be £240,366.37 up of the loan amount of £135,000 plus interest (£104,231.37) with an application fee of £100, product fee of £895, funds transfer fee of £20 and legal fee of £120.  The overall cost for comparison is 5.1% APR representative.

Please note: the example above is for an investment property purchase only and assumes a payment date of 1st of the month.  If you choose to pay your mortgage later in the month this will affect payments and could result in a higher APR.  For product transfers, re-arrangement and additional borrowing applications, certain fees do not apply.  Please speak to your mortgage adviser for further details.

Portability:

  • This product is portable. This mortgage product is portable which means that you may transfer this product to another buy to let property (subject to terms and conditions).  A portability fee is payable at the time of porting the mortgage at the prevailing rate).