InterBay Commercial part of OneSavings Bank plc group have introduced a new Buy to Let range and of real interest for the market is an 85% Loan to Value product stress tested at 110% interest cover on the pay rate.
This means that the amount you can borrow is worked out by the monthly rental income needing to be 110% of the monthly interest only payment subject to the 85% maximum LTV.
E.g. max loan = monthly rental income x 12, divided by pay rate %, divided by 110%
Therefore in this example: max loan = rent x12, divided by 6.1%, divided by 110%
or as an easy calculation max loan = monthly rent x 178.83 (this is very competitive considering the high 85% LTV)
- 6.1% Libor Tracker = 3 month Libor (min rate 0.75%) plus 5.35% for the term
- Maximum 85% LTV
- 2% arrangement fee (additional 1% fee if loan below £75,000)
- HMOs and New build flats maximum 75% LTV
- Interest Only available up to a maximum 10 year term, but available for longer with a 0.5% rate loading
- Early repayment charge 3% for first 5 years and 1% for the life of the loan
- Minimum 2 years BTL experience (no First time landlords)
- Available to individuals, limited companies, LLPs and Partnerships
- Max loan size £1million
This now gives an alternative for Buy to Let investors at 85% LTV if your circumstances do not fit criteria for Kent Reliance who offer a similar product at 4.89% two year discount, with a 2.5% fee and you can borrow 192 times monthly rental income. However the reversion rate after 2 years is currently 6.58% so may not be as good value over a longer term if rates stay low.
I have been told that Interbay use a more flexible commercial approach to Buy to Let lending which could be an advantage in more complicated situations.
InterBay Commercial will only deal with authorised introducers and not the general public.
For assistance with this or any property finance requirements please, call us on 01603 489118 or email firstname.lastname@example.org
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