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Buy to Let mortgages Terms and Conditions

Full Terms and Conditions relating to our Buy to Let 3 Year Discounted Mortgage - up to 75% Loan to Value


  • Existing borrowers for product transfer, re-arrangement, Additional Borrowing applications and existing borrowers transferring their investment mortgage to a new investment property.
  • 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 purpose built 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  • Product Availability: This product may be withdrawn with little or no notice.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 application fee is paid.
  • Purchase/Remortgage 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:

  • 1.75% Variable (our Standard Variable Rate minus 3.44% for 3 years).​
  • Then changing to our Standard Variable Rate (SVR) currently 5.19% variable.
  • The overall cost for comparison is 4.6% Annual Percentage Rate of Charge (APRC)*.
  • It should be noted that if the property is empty, you are still required to make the full monthly mortgage repayments. The loan is based solely on the rental income derived from the letting. Therefore, the condition of the property must be satisfactory requiring no essential items of repair.
  • 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.
  • After 3 years the account will change to the Society’s standard variable rate, 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.
  • 3.44% discount off the Society’s standard variable rate (currently 5.19%) for 3 years.

* The actual rate available will depend upon your circumstances. Ask for a personalised illustration.


  • Maximum loan £1,500,000.
  • Maximum loan to value is 75% (excluding any fees added to the loan). Loan to value is your total mortgage amount divided by the purchase price or valuation whichever is the lower.
  • Minimum Property Value is £75,000.


  • A product fee of £995 is payable. This can either be deducted or 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.
  • Early Repayment Charge: If the mortgage is repaid either in whole or in part, or is transferred to an alternative product, before 3 years from the completion date then an early repayment charge will apply. This charge will be based on; 1.5% of the outstanding loan if the mortgage is repaid before the end of the first year from the date of completion, 1% of the outstanding loan if the mortgage is repaid before the end of the second year from the date of completion and 0.5% of the outstanding loan if the mortgage is repaid before the end of the third year from the date of completion. 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.
  • 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)
  • A Mortgage Exit Fee is payable at the prevailing rate on full repayment (redemption) of your mortgage.

Additional Borrowing:

  • If you qualify, additional funds may be made available using the Society’s Additional Borrowing facility. Further details are available on request.

Property Rental:

  • The property must be let on an Assured Short-hold Tenancy Agreement for a minimum period of 6 months and a maximum period of 12 months.
  • Sale and Rent back agreements are not acceptable.
  • Unacceptable tenancy lets are houses converted into flats, houses in multiple occupation (HMO’s) and accommodation for Department of Works & Pensions (DWP) and/or student tenants. Maximum portfolio – 10 (with or without mortgages) and a maximum of 5 properties 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 remortgage with additional borrowing.
  • For a remortgage 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 a Non-portfolio Investment property):

The Annual Percentage Rate of Charge (APRC) varies with the circumstances of each mortgage. Here is a representative example of a loan secured on your investment property: A mortgage of £250,000.00 on an interest only basis payable over 25 years initially on a discounted variable rate of 1.75% (equal to 3.44% discount off our Standard Variable Rate) for 3 years and then on our Standard Variable Rate (SVR) of 5.19% (variable) for the remaining 22 years you would pay:

1 monthly repayment of £203.77, followed by
36 monthly repayments of £364.07, followed by
264 monthly repayments of £1,076.78
1 final repayment of £250,000.00

The total amount payable would be £548,715.21 made up of the loan amount of £250,000.00 plus interest (£297,580.21) product fee of £995, a funds transfer fee of £20 and legal fee of £120. The overall cost for comparison is 4.6% APRC 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 APRC. For product transfers, re-arrangement and additional borrowing applications, certain fees do not apply. Please speak to your mortgage adviser for further details.


  • This product is portable. If you change your investment property, this mortgage product may be transferred to your new investment property (subject to terms and conditions) - please see our 'Buy to Let Discounted Rate Portability Sheet' at the bottom of this page for details.

Caution: Before investing in the residential lettings market there are many costs and risks to be considered and appropriate professional advice should be obtained. The Society’s provision of Buy to Let funding does not endorse the viability of any residential property investment.

Mortgage IllustrationThis product page does not contain all of the details you need to choose a mortgage. Please speak to your Mortgage Adviser who will provide you with a mortgage illustration, which will detail all the features of a particular mortgage. Please make sure you read the mortgage illustration before you make a decision on your choice of mortgage product.

This product sheet should be read in conjunction with our Homebuyers Guide booklet, Buy to Let Discounted Rate Portability Sheet and the Statement of Practice – Borrowers booklet. For other charges, which may apply, see our Tariff of Mortgage Charges.

Your investment property may be repossessed if you do not keep up repayments on your mortgage