Terms and Conditions relating to our 2 Year Discount Buy to Let Mortgage Products (2.70% discount)
- New customers for the purchase or remortgage 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 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 advisor.
- Product Availability: This product may be withdrawn with little or no notice.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.
- 2.70% discount off the Society's standard variable rate (currently 5.19%) for 2 years.
- 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.
- The interest rate will not fall below 2.49% during the first 2 years. After 2 years the account will revert 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.
- Minimum loan £150,000.
- Maximum loan £500,000.
- Maximum loan to value 75% (including any fees added to the loan). Loan to value is your total mortgage amount divided by the purchase price, whichever is the lower.
- An application fee of £100 is payable upfront, which is non refundable.
- A product fee of £895 is payable. 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 Valuation fee is payable up front by the applicant - please refer to the 'Valuation fee' section in our 'Homebuyer's Guide' and 'Tariff of Mortgage Charges' leaflets for further details.
- Early Repayment Charge: If the mortgage is repaid either in whole or in part, or is transferred to an alternative product within the first two years then an early repayment charge will apply. This will be based on; 2% of the outstanding loan if the mortgage is repaid within one year after the mortgage completes or 1% of the outstanding loan if the mortgage is repaid between one to two years after the mortgage completes. 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.
- If you qualify, additional funds may be made available under the Society's Additional Borrowing scheme.
- An upfront additional borrowing fee of £150, together with valuation fee is payable (per scale) in respect of any additional borrowing.
- Further details are available on request.
- 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 converted into flats, 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)..
- Rental income must be at least 125% of mortgage interest calculated at ta rate of 5.5%.'
Deposit Protection Scheme
- If a deposit is to be paid by the tenant, 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 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 £150,000 on a capital and interest (repayment) basis payable over 25 years initially on a discounted variable rate of 2.49% (equal to 2.70% discount off our Standard Variable Rate (SVR)) for 2 years and then on our SVR of 5.19% (variable) for the remaining 23 years you would pay:
1 monthly repayment of £163.28, followed by
24 monthly repayments of £670.82, followed by
276 monthly repayments of £873.14
The total amount payable would be £258,567.10, made up of the loan amount of £150,000 plus interest (£107,249.60) with an application fee of £100, a product fee of £895, funds transfer fee of £20, standard valuation fee of £185 and legal fee of £117.50. The overall cost for comparison is 4.8% APRC representative.
Please note: the example above is for an investment property purchase only. 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. This mortgage product is portable which means that you can transfer this product to another buy to let property (subject to terms and conditions).