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

Hi Neil

I assume standard BTL not HMOs or similar.

Thanks

Jonathan

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.
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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 🙂

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.

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.”

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

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% 🙂

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. 🙂

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

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