Principality 70% LTV buy to let rate revisedMake Text Bigger
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”
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