News Flash – 80% LTV available on New Build Flats!!

by Neil Patterson

14:21 PM, 5th March 2014
About 6 years ago

News Flash – 80% LTV available on New Build Flats!!

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News Flash – 80% LTV available on New Build Flats!!

Ever since the Credit Crunch it has been very hard to finance new build flats on Buy to Let mortgages with lenders criteria either a straight No, or at a reduced Loan to Value.

However Aldermore commercial have now released new criteria allowing 80% maximum LTV on new build flats for individual, company applicants and Scottish borrowers 🙂

There is also no minimum income required, no maximum portfolio size and Ex-pats will be considered!Aldermore

Basic Criteria includes:

  • Loan size: Minimum £50,000 (Minimum £100,000 for HMOs and ex-pats)
  • Maximum £1,000,000.
  • Maximum age: 85 years at end of mortgage term.
  • No minimum income (applicants must have a verifiable income source.)
  • Non-homeowners or first-time landlords not accepted.
  • Minimum property value £75,000 for Standard Buy to Let property
  • Minimum property value £200,000 for HMO property (exceptions may apply).
  • Ex-pats will be considered. They must have evidence of UK buy to let experience (tax returns & SA302s); proof of UK citizenship; proof of residency abroad (not PO Box) within last three months; proof of residency in UK within last five years; proof of UK mailing address (not security address); provide a copy of overseas contract and proof of salary (last three months’ bank statements; and, have a UK bank account for rent payments.

Product Range for 80% LTV with a 2.5% arrangement fee starts at:

  • 3 year discount 5.29% reverting to LIBOR+5.00% stress tested at 125% of pay rate
  • 3 year fixed 5.79% reverting to LIBOR+5.00% stress tested at 125% of pay rate
  • 5 year fixed 5.99% reverting to LIBOR+5.00% stress tested at 125% of pay rate

If you need any help with a Buy to Let application you can call me on 01603 489118 or email npatterson@property118.com

Or if you would like to add your own requirements and search for the most popular available Buy to Let products please click here

Buy to Let Mortgage sourcing system and calculator

Buy to Let Mortgage sourcing system and calculator



Comments

Neil Patterson

14:31 PM, 5th March 2014
About 6 years ago

Mark, see above criteria for Ex-pats.

This could be useful for your Malta Trip 🙂

Mark Alexander

14:36 PM, 5th March 2014
About 6 years ago

Given that I will be presenting to a group of over 50 British Expats in Malta in the 15th March this is very good news.

My presentation is entitled "How and Why UK Property Investment Works"

For more details please see >>> http://www.property118.com/malta-expat-consultancy-trip/63648/

Personally I think it will be difficult to get deals to stack up at 80% LTV unless they are very high yielding properties such as HMO's. Having said that, given this product is with Aldermore commercial it does make sense that they will probably be targeting larger HMO landlords anyway. I think the interest cover at 125% is far too generous, especially based on the discounted rate. Personally I would feel very uncomfortable borrowing the maximum based on the interest cover required by the lender and I do not consider their criteria to be responsible lending. At this level of exposure I would expect to see interest cover to be at least 150% and based on a stress tested rate of an absolute minimum of 8%. Good job I didn't write their crieria then hey?!!! LOL

There could have been at least two more headlines to this article as well as the excellent one Neil has used:-

80% LTV for Limited Company Buy to Let

80% mortgages for ex-pats wanting to buy to let
.

Howard Reuben CeMap CeRER

14:53 PM, 5th March 2014
About 6 years ago

Hi Mark

I, and other experience landlords will, agree with your overview and I also think the lender agrees also in such a way that they don't offer it to first time landlords, thereby only providing access to people who know their BTL business and calculate viable yields etc.

This is indeed a great product for Ltd Coys (inc SPV's, LLP's) where so many lenders have pulled out since "the Great Crunch of '08".

I also know (because I have access to this product) that the lender has no maximum portfolio exposure, so where experienced portfolio landlords want to add more properties at 80%LTV, this is an excellent tool to assist.

Howard

Tony Church

12:38 PM, 7th March 2014
About 6 years ago

Reply to the comment left by "Howard Reuben" at "05/03/2014 - 14:53":

This sounds like quite a good deal, only the rates are very high at 5.29% up to 5.99% i need to remortgage a property that i have been renting out for the past 6 years to a BTL
maybe this could be a good product for me, but i dont need 80% LTV 75% would be fine.
I think i fit in with all the other requierments and criteria.

Howard Reuben CeMap CeRER

12:49 PM, 7th March 2014
About 6 years ago

Reply to the comment left by "Tony Church" at "07/03/2014 - 12:38":

Hi Tony

The Aldermore funded deal above is highlighted to help Limited Companies (and others) raise 80%LTV on new build flats.

If you have a 6 year old (at least) property and you don't need 80%LTV anyway, well, the choice is far far greater for you.

Happy to chat in detail and see if we can help place your mortgage requirements.

Best regards

Howard

http://www.hdconsultants.net/meet-the-team/#Howard_Reuben

Neil Patterson

15:55 PM, 10th March 2014
About 6 years ago

Comment Test


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