15:58 PM, 19th December 2018, About 4 years ago
The Teachers Building Society has entered the Holiday Let mortgage market launching a new mortgage specially designed for properties in the holiday let sector.
Teachers is an old lender, but although until fairly recently they only focused on lending to teachers they have now opened up their proposition and not only will they lend to the wider public, but also in more ‘specialist’ areas as well. With very very few lenders providing holiday let mortgages this is a welcome addition to our panel.
The Building Society statement said: “We recognise the limited options available to clients who wish to take advantage of evolving market opportunities by buying a holiday let property, and are pleased to be able to offer this new product to your clients.”
Key lending criteria:
• Can lend up to 75% LTV.
• Maximum loan size of £750k.
• Maximum term of 40 years.
• Max age at end of term is 83.
• Interest only option available with sale of property as the repayment vehicle.
• Available in England and Wales in areas where there is demand for holiday let rentals.
• Purchase – average of low/medium/high x 30 weeks.
• Remortgage – 100% of evidenced rental receipts in a 12 month period used with rental coverage assessed at 135%.
A variable rate, currently 3.49%, which is discounted by 2.50% from the Buy-to-Let Standard Variable Rate for the first 2 years. It then changes to the Buy-To-Let Standard Variable Rate, which is currently 5.99%, and remains on variable rate terms for the rest of the mortgage.
The overall cost for comparison is 5.9% APRC representative.
An arrangement fee of £899 is payable with the application and an application fee of £99 (non-refundable) is payable with the application.
For assistance with this or any type of property finance please contact me using the form below.
Howard Reuben Cert PFS, Certs CII (MP & ER)