Principality BuytoLet rates revised downwards

by Neil Patterson

13:30 PM, 23rd August 2012
About 7 years ago

Principality BuytoLet rates revised downwards

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Principality BuytoLet rates revised downwards

Principality BuytoLet rates have been revised downwards by 0.2% and introduced two new products all with low fixed fees down to a minimum of £99

These are two year variable rate products for the Building Society with the biggest advantage being the low set up costs for higher value properties instead of large percentage fees based on the amount of the loan. Product details in descending order of Loan to Value are:

5.79% 2 year tracker max 75% LTV – Bank of England Base rate (currently0.5%) plus 5.29% until 30/09/2014

Reverts to Standard Variable rate currently 4.99%. Product fee £900 plus £99 commitment fee. Early repayment charge 4% of the amount repaid until 30/09/2014.

Total cost over 2 years on a £100,00 interest only mortgage = £12694.68

5.29% 2 year tracker max 70% LTV – Bank of England Base rate plus 4.79% until 30/09/2014

Reverts to Standard Variable rate currently 4.99%. Product fee £900 plus £99 commitment fee. Early repayment charge 4% of the amount repaid until 30/09/2014.

Total cost over 2 years on a £100,00 interest only mortgage = £11684.69

3.69% 2 year tracker max 60% LTV – Bank of England Base rate plus 3.19% until 30/09/2014

Reverts to Standard Variable rate currently 4.99%. Product fee £900 plus £99 commitment fee. Early repayment charge 4% of the amount repaid until 30/09/2014.

Total cost over 2 years on a £100,00 interest only mortgage = £8452.72

4.39% 2 year tracker max 60% LTV – 0.60% discount off Standard Variable Rate (4.99%) until 30/09/2014

Reverts to Standard Variable rate currently4.99%. Product fee £0 plus £99 commitment fee. Early repayment charge 4% of the amount repaid until 30/09/2014.

Total cost over 2 years on a £100,00 interest only mortgage = £8887.69

Standard criteria:

  • BuytoLet products are available for holiday lets (very unusual)
  • Stress tested at 125% interest cover on SVR+1% which allows you to borrow 160.26 times the monthly rental income
  • Minimum income requirement £20,000 for sole or £30,000 for joint applications
  • HMOs are acceptable  subject to a maximum of 4 tenants on a single AST
  • Maximum number of 5 properties allowed in a portfolio regardless of lender
  • Min Loan £25,000 max £250,000 or up to £500,00 if referred
  • All applicants must be an owner occupier or party to a residential mortgage
  • Only available in England and Wales

As you can see from the above the biggest niche areas for this lender are the low lenders fees and more unusually the ability to consider a holiday let.

However yet again this is another lender that discriminates against professional landlords with the maximum number of BuytoLet properties you are allowed to own in your portfolio being five.

To discuss a specific Buy to Let deal you can call us on 01603 489118 or email info@property118.com

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



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