Buy to Let mortgage rates moving down not up with Virgin!
Despite the Press and politicians misreporting and misunderstanding Mark Carney’s (the Governor of The Bank of England) latest comments, Virgin Money have actually reduced their Buy to Let mortgage rates for lower Loan to Values.
Mr Carney did not say interest were definitely going up this year and Virgin Money are proving that point by today releasing their new product range revisions.
Two main niche criteria for Landlords that Virgin will assist with are remortgaging inside 6 months of the original purchase date (excellent for cash and auction buyers) and First Time Landlords.
Key changes to product rates are:
- 2 year fixed rates have been reduced by up to 0.16%, with £1,995 fee products available from 3.25% at 60% LTV
- 3 year fixed rates have been reduced by up to 0.50%, with £995 fee products available from 4.09% at 60% LTV
- 5 year fixed rates have been reduced by up to 0.21%, with £1,995 fee products available from 3.95% at 60% LTV
- 2 year trackers with £995 fee now start from 3.09% at 60% LTV
A £500 Cashback incentive is available across all BTL products. Fee Saver Options, where no product fee is payable, are available fixed rate products, but the interest rate is increased relative to the length of the term.
Products are stress tested at 5.99% notional rate and 125% interest cover meaning you can borrow a maximum of 160.26 times the monthly rental income.
To Search our Property118 Buy to Let calculator and quotation engine for a range of available market products please Click Here
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Selling to a tenant through a rent to buy scheme?
Member Since June 2013 - Comments: 381 - Articles: 61
12:56 PM, 20th June 2014, About 12 years ago
VM also provide funding for up to 10 properties for purchase or remortgage and no limit to a property portfolio held outside Virgin Money and also the maximum loan size is £1 million with no minimum loan size.
Of course there are other criteria conditions too, and other products are available! 🙂
All in all though, nice one VM!
Howard
Member Since September 2013 - Comments: 33
1:18 PM, 20th June 2014, About 12 years ago
How do they feel about HMOs and second loans secured on the property?
Member Since February 2011 - Comments: 3454 - Articles: 286
1:37 PM, 20th June 2014, About 12 years ago
Hi Edna,
VM would always want the first legal charge however they do not lend on HMOs
Exhaustive list below of unacceptable properties – just because I found it 🙂
houses in multiple occupation
properties where the unexpired lease term is less than 30 years at the end of the mortgage term
mobile homes/caravans/park homes/houseboats
working farms, smallholdings and houses subject to an agricultural occupancy restriction
properties with occupancy restrictions including retirement flats and sheltered accommodation
properties with occupancy restrictions including retirement flats and sheltered accommodation.
shared ownership properties
affordable housing properties
uninsurable properties
properties built using high alumina cement or Mundic not classified as Class A or A/B following a
Petrographic Test
single leaf brick offshoots/extensions (unless the
single skin element relates to a non-habitable room)
PRC Homes not repaired under an approved scheme
Properties with Pre – emption Clauses
Properties constructed using concrete Large Panel Systems (LPS)
Studio Flats
Properties with Overage Clauses
Properties with ongoing structural issues
Properties altered/adapted for commercial use
Landlocked properties
Properties with greater than 5 acres of land as part of the title
Self Build Properties whilst under construction and not habitable
Properties where power lines or electricity supply appar
atus are located directly over and/or on the site