Principality Buy to Let – new range starts with a 1.99% rate!

by Neil Patterson

16:32 PM, 18th November 2013
About 6 years ago

Principality Buy to Let – new range starts with a 1.99% rate!

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Principality Buy to Let – new range starts with a 1.99% rate!

Principality Buy to Let have launched a massively improved new product range only available via brokers, but I have added them to our Buy to Let Mortgage Calculator and Sourcing system.

The Headline grabber is a 1.99% two year tracker BBR + 1.49% until 30/11/2015 with a maximum 60% Loan to Value and a 2.5% Product Fee. This also comes with a Free Valuation and Legals for a remortgage. Reverts to standard variable rate currently 4.99%.

This could be great value on a smaller remortgage, because of the percentage fee and free Val/Legals.

Other stand out products:

All including Free Valuations and Legals for a remortgage

2.99% Penalty free two year discount max 60% LTV, Product fee 1%

3.19% Two year discount max 70% LTV, product fee £999

3.49% Two year discount max 75% LTV, product fee £999

These are not high LTV products, but could be great value in the right circumstance, or you could even add the Castle Trust equity loan!

Standard Criteria for Principality:

  • Minimum Loan amount £25,000
  • Minimum Property Value £50,000
  • Minimum earned Income £20,000 or £30,000 for joint applicants
  • Maximum of 5 BTL properties with all lenders
  • Stress tested at 5.99% notional rate and 125% interest cover allows you to borrow 160.26 times the monthly rental income
  • Maximum age at end of term 69

For more information on the above products and to source a Buy to Let quote please Click Here

or if you need assistance and advice arranging a mortgage:

Email: Info@property118.com

Call: 01603 489118Principality Buy to Let



Comments

Jonathan Wilson

16:42 PM, 18th November 2013
About 6 years ago

Hi Neil

I assume standard BTL not HMOs or similar.

Thanks

Jonathan

Mark Alexander

16:52 PM, 18th November 2013
About 6 years ago

Hi Neil

I love the idea of combining this with the Castle Trust equity loan to get to 80% LTV. You'd be paying 1.99% of the first 60% LTV and 0% on the other 20% with Castle Trust. What a brilliant product for cashflow, especially if you think values are unlikely to increase too much.
.

Neil Patterson

16:58 PM, 18th November 2013
About 6 years ago

Hi Jonathan,

Yes standard BTL, but also "Houses in multiple occupancy are acceptable to a maximum of 4 tenants on a single AST. The property must be a standard residential dwelling."

They will also unusually allow holiday lets as well subject to referral 🙂

Howard Reuben CeMap CeRER

17:09 PM, 18th November 2013
About 6 years ago

Hi Neil

Yes, I think that this new 1.99% two year tracker with a Free Valuation and Legals for a remortgage is an excellent 'cashflow' product.

They're quite a quirky lender with some useful niches, such as they will do Regulated BTL deals, their BTL products are also available for holiday lets and they'll even lend on houses with solar panels 🙂

However, as with many lenders nowadays, they also state "If an applicant has had a pay day loan within the last 12 months, we will be unable to consider an application from them".

But, back to the headline grabber of 1.99% (available for BTL'ers with up to 5 properties only), so yes this is a great rate and can be an excellent opportunity for smaller landlords to benefit from good yield.

As always, professional advice should be sought pre-application.

Howard Reuben CeMap CeRER

17:15 PM, 18th November 2013
About 6 years ago

Reply to the comment left by "Jonathan Wilson" at "18/11/2013 - 16:42":

"Multiple Occupancy
Houses in multiple occupancy are acceptable to a maximum of 4 tenants on a single AST. The property must be a standard residential dwelling."

DC

17:45 PM, 18th November 2013
About 6 years ago

But once again very restrictive criteria for the many older, possibly retired 'larger portfolio owning' landlords that derive most of their income from property investment.

•Minimum earned Income £20,000 or £30,000 for joint applicants
•Maximum of 5 BTL properties with all lenders
•Maximum age at end of term 69

Neil Patterson

18:46 PM, 18th November 2013
About 6 years ago

Hi DC,

That is what differentiates Lenders and products at the moment.

Think of BTL products like a set of old fashioned kitchen scales where they have to balance out. What they give you in one hand in criteria or costs they will take in another.

That is why there is no one best product or lender. Only the one that fits closest to your requirements and circumstances.

Maybe only 10% of borrowers will fit these products, but it will be the same for every other lender.

It is worth pointing out that such rates exist just in case they work for you and also that a lender in the current market is confident and hungry enough for business to slash their rates by up to a whole 1% 🙂

13:13 PM, 19th November 2013
About 6 years ago

It's great to see competitive products like this entering the market place and I like the idea of combining the Castle Trust product with this one.

It shows you can get "creative" with mortgage products with full disclosure to the lenders. 🙂

Puzzler

21:38 PM, 19th November 2013
About 6 years ago

According to the website it is max 5 mortgages with Principality not across all lenders, I cannot find if there a limit on the total portfolio

Howard Reuben CeMap CeRER

8:07 AM, 20th November 2013
About 6 years ago

Reply to the comment left by "Puzzler " at "19/11/2013 - 21:38":

Hi Puzzler

You may be looking at their consumer site pages?

As a whole of market Broker, of course I also have access to their intermediary information pages too, and I can confirm that they publish the following;

"• 5 property maximum whether mortgaged or unencumbered per borrower whether in sole name or in joint names (including the current application) irrespective of whether the properties are with the Society or another lender."

My member profile details my accreditations and status.

Hope this helps.

Howard

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