3.40% variable rate for 2 years. This is the current Buy To Let Mortgage Variable Rate currently 5.29% with a discount of 1.89% and a £995 product fee.
This product is for regulated buy to lets only
A mortgage of £150,000.00 payable over 25 years initially on a variable rate for 2 years at 3.40% and then on our Mortgage Variable Rate (MVR) of 5.29% (variable) for the remaining 23 years would require 24 monthly payments of £427.95 and 276 monthly payments of £665.84.
The total amount payable would be £345,472.64 made up of the loan amount plus interest (£344,042.64) an Application fee of £995.00, a CHAPS Fee of £20.00, a Valuation fee £170.00, a Legal fee of £105.00, an Insurance Rearrangement fee of £25.00 , and a Mortgage Discharge Fee of £90.00.
The overall cost for comparison is 5.20% APR representative.
Please note the example above is for a house purchase on an interest only basis.
We do not consider applications solely on a self-financing basis, but look at the overall situation, including any other mortgages that the applicant(s) may have when assessing the application. The general maximum permitted exposure with the Society will be £500,000, 5 properties, and in total £1m, 10 properties (including any exposure with the Society).
Assessment of overall affordability is based on ALL mortgages (both current and proposed).
Buy to let mortgages are considered on properties in mainland UK.
The maximum LTV is 75% (must include fees). (Subject to a maximum Interest Only advance of £250,000) Please refer to product details for its specific LTV limit.
The minimum mortgage amount is £50,000 (refer for lower amounts)
The minimum valuation for Buy to let mortgages is £75,000
Please note that we do not accept applications that include Debt Consolidation for Buy To Let remortgages
The following criteria should be met:
• The application form should be fully completed and all information and evidence should be obtained in the same way as a residential mortgage application.
• The applicant(s) must have total earned income of at least £20,000 pa (please refer to our checklist to see how to evidence this)
• The applicant(s) must own their own home (with our without a mortgage)
• Any other mortgage payments e.g. residential mortgage should be included as outgoings on the Budget Planner.
• 50% of the rental income relating to the subject property may be included as income on the Budget Planner.
• The rental income should be at least equal to 125% of the monthly interest payment.
• The rental income should also be at least equal to 100% of the monthly interest payment at Mortgage Variable Rate
• The security will be valued on a vacant possession basis
• The valuer will be asked to comment on the suitability of the property for rent, the rental income achievable, and the market for such rental properties in the area.
• The Society will only accept properties that are let, or are to be let on an Assured Shorthold Tenancy of between six and twelve months duration
• A statement of Assets and Liabilities to be provided.
• Three months satisfactory bank statements
• If there are other existing Buy to Let properties, to establish that they are self-financing, we will require: ◦ Copies of the current Tenancy Agreements
◦ Latest annual mortgage statements
• Applications will not be accepted on “New-build” flats. i.e. Any flat less than five years old or which has been previously unoccupied.
• There may be occasions where the applicant's overall indebtedness is considered too high based on their financial circumstances irrespective of whether the background BTL mortgage are "self -financing"
We will consider applications on a regulated Buy to Let product specifically for letting to family members.
We will not currently consider applications from adult children (sons and/or daughters) purchasing their parents current residence and then renting it back.
Regulated Buy to Let applications are considered strictly on an affordability basis. Any rental income received will not be factored into our affordability assessment. We obtain the AST to ensure that if the property converted to a traditional buy to let that the case would pass the rental calculation (currently - the rent must exceed the interest only repayment at the Society's Mortgage Variable rate and the rental income should be at least equal to 125% of the monthly interest payment at the initial pay rate).
Regulated Buy to Let applications are assessed in the same way as a standard residential mortgage. The Society stresses the mortgage repayment in order to assess the affordability of the loan in relation to the clients existing outgoings and factoring in the new Buy to Let.
The stated expenditure will be reviewed in conjunction with the bank statements and/or with statistical data, as appropriate. Applications will be declined where affordability cannot be proven on realistic expenditure.
The Society will normally consider Regulated Buy to Let mortgage advances on a capital and interest repayment basis. Interest Only applications (up to a maximum loan amount of £250,000)should have a satisfactory repayment/exit strategy in place and will be considered on an individual referral basis.
Please contact Furness Direct on 0800 220 568 if you wish to discuss a case.
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