Principality has revised one of its two buy to let products upwards.
The new rate at 4.99% has a low fixed product fee of £999 and includes a free valuation and remortgage service, reducing upfront costs for larger loan amounts up to a maximum of 70% Loan to Value.
Product detail and criteria
Bank Base Rate (currently 0.5%) plus 4.49%% until 31.05.14 meaning you will pay a rate of 4.99% variable.
Reversion rate after the initial 2 year period is the Principality Standard Variable Rate for the remainder of the mortgage, which is currently 4.99%.
Maximum Loan to Value 70%.
Product fee of £999 can be added to the loan as long as the total amount does not exceed a maximum 70% LTV.
Incentives included are a free Remortgage Transfer Service and no valuation fee.
Early repayment charges are 4% of the balance repaid until 31.05.14.
The amount you can borrow is calculated by the monthly rental income having to cover the interest only mortgage payment by 125%. This gives you the ability to borrow up to 192.38 times the property’s monthly rental income as assessed by the lender’s valuation survey up to 70% LTV.
Maximum loan amount £250,000 and Minimum loan amount £25,001 with minimum property value £50,000 (£75,000 in London post codes)
No HMOs, Ex-Local Authority or Properties sold at auction
Cost over the 2 years not including incentives on a £160,000 interest only advance = £17,066
To see how this is calculated click here for previous article “How to choose a Buy to Let mortgage based purely on cost”
If you would like to add your own requirements and search for the most popular available Buy to Let products please click here
About Neil Patterson
Neil's career began in banking in 1990. He has also managed a building society branch and worked in business development. He became an Associate Partner of The Money Centre in 2003 and subsequently took on the role of Head of Operations which included training, quality control, project management and compliance. Neil has been a Partner of Property118.com since day one, responsible for operational management which includes, amongst many other things, updating the buy to let mortgage sourcing calculator and quote engine.