Buying to let can provide you with an income and may bring a return on your capital in the medium to long-term. However, economic change within the UK means demand for rented properties fluctuates, so you should do some research before deciding to enter the buy to let market. Our Mortgages explained PDF gives some basic tips on buying to let.
The tenancy agreement must be an assured shorthold tenancy for either six or twelve months. We use rental income to assess affordability. You do need to be employed/self-employed and show that your finances are self-supporting. The rental income from the property must cover 135% of an interest only mortgage payment based on our stressed rate, currently 5.99%. We ask our valuer to assess the potential rental value of the property when carrying out the mortgage valuation. Each mortgage application is assessed on an individual basis. The property you are buying or refinancing will be used as security for the loan on a first charge basis.
Mortgage interest is charged on a daily basis.
This product is not a regulated mortgage contract unless the tenant is a relative of the borrower.
Our Ex Pat Buy to let variable mortgage is available to you if you are looking to finance a property to let or remortgage a let property and are a British national not currently resident in the UK. Properties must be located in the following post code areas; AL, BA, BH, BN, BS, DT, EX, GL, GU, HA, HP, HR, KT, LU, MK, NN, OX, PO, RG, RH, SG, SL, SM, SN, SP, SO, TA, TW, UB, WD, WR. The mortgage term must be between 5 and 25 years. Properties where the valuation is less than £125,000 must be referred to our Customer Service department for initial approval.
£50,000 (Min) - £500,000 (Max)
The loan must not exceed 60% of the property’s purchase price or valuation (the lower of the two).
Mortgage interest is charged on a daily basis.
Legal work is required when buying or remortgaging a property to let. This legal work is carried out by a solicitor and is payable by you. We can use the same solicitors as you, providing there is a minimum of four Approved Managers/License Holders and they are registered on The Law Society website (www.lawsociety.org.uk).
Licensed conveyancers are also acceptable for residential business only. The conveyancer must be registered with the Council of Licensed Conveyancers and be in a firm with at least four Approved Managers/License Holders.
- Overpayments allowed
Standard mortgage valuation fee
A valuation of the property and rental income assessment will be required to assess the security offered for the loan. We offer the choice of either a basic mortgage valuation, which is for us to assess security only, or a Home Buyer’s Report that will give you a more comprehensive guide to the condition of the property. It is payable in advance and cannot be refunded once the valuation has taken place (see our Mortgages explained PDF for full details). If you would like a full building survey, we will give you the names of some local surveyors who you can contact to give precise instructions and negotiate a price.
Maximum loan to value
Loan to Value (LTV) is the proportion of the value or price of the property (whichever is the lower) that you borrow on a mortgage. For example, a £75,000 mortgage on a house valued at £100,000 would mean a LTV of 75%.
The application fee can be added to the mortgage and is refundable if the mortgage does not take place. If you add the application fee to your mortgage, this increases the amount you borrow and will also increase your monthly payments.
A Mortgage Exit Administration Fee (MEAF) applies when you repay your mortgage. Please see our Tariff of Charges leaflet and your Key Facts Illustration (KFI) for details.
House purchase applications must complete within three months of the date of the formal mortgage offer or within 6 months for a property currently under construction. Remortgages must complete within three months from the date the application is received.
This mortgage is portable. The product can be transferred to the new property up to the value of the product outstanding at redemption, subject to satisfying lending policy at that time.
A Mortgage Exit Administration Fee (MEAF) applies when you repay your mortgage (see our Tariff of charges PDF for details). Charges applying to the ongoing administration of your Buy to let mortgage are detailed in our Tariff of charges PDF, which you will be given before your mortgage completes.
WE HAVE NO CURRENT PLANS TO WITHDRAW THIS PRODUCT BUT IT MAY BE WITHDRAWN WITHOUT NOTICE
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE