Buy to Let House in Multiple Occupation

  • Initial rate:

    6.15% variable

  • APRC:

    6.3%

  • Product fees:

    £1500 purchase

    £1500 remortgage

    £0 Existing borrower transfer

  • Maximum LTV:

    60%

  • Early repayment charge:

    Yes

  • Portable
  • Overpayments allowed

Your home may be repossessed if you do not keep up repayments on your mortgage.

Interest rates:

  • 6.15% variable. Our standard variable rate for the term of the mortgage.
  • For comparison purposes: 6.3% APRC

Maximum LTV:

  • 60%

Fees:

  • Purchase application fee: £1500
  • Remortgage application fee: £1500
  • Existing borrower product transfer application fee: £0
  • Valuation fee is payable
  • Mortgage exit administration fee (MEAF): £100

Loan size:

  • £50,000 (min) - £500,000 (max)
  • £40,000 for existing borrowers transferring onto this mortgage

Features:

  • Overpayments allowed

Early repayment charge:

The Early Repayment Charge period applies from the date of completion for the duration of the 3-year
deal.
It is calculated on the original loan amount (or balance transferred from an existing mortgage to this
product).

  •  First 3 years - 2%

Overpayments:

Each year during the 3-year deal, you can overpay up to 10% of the original loan amount without
incurring any charges.

  •  If you exceed the 10% limit in a given year, the excess amount will be subject to the early

repayment charge for that year.
For example:
If your original loan is £200,000:

  • You can overpay up to £20,000 per year without penalty.
  • If you overpay £30,000 in Year 1, the extra £10,000 would incur a 3% charge (£300).

A mortgage of £185,625 (including an application fee of £1,500) payable over 17 years on our standard variable rate, currently 6.30% for the mortgage term of 17 years would require 204 monthly payments of £974.53.

The total amount payable would be £384,804.12 made up of the loan amount plus interest of £198,804.12 a valuation fee of £275 and a MEAF of £100.

The overall cost for comparison is 6.5% APRC representative. Please note this illustration is based on an interest only basis (capital and repayment is also available)

Who’s eligible to apply?

  • Our House in Multiple Occupation (HMO) Buy to Let variable mortgage is available to you if you are looking to purchase, remortgage or borrow additional funds where the property is let on a HMO basis. 
  • Property must be located in one of the following postcode 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 maximum number of HMO properties per borrower is 2.
  • No first-time landlords. Landlords must have at least 1 year’s experience as an HMO landlord or 2 years’ experience as a standard landlord

Buy to Let terms:

  • 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. 
  • The tenancy agreement must be an assured shorthold tenancy of up to 3 years.
  • We use rental income to assess affordability and you do need to be employed/self-employed, resident in the UK and show that your finances are self-supporting. The rental income from the property must cover 135% of an interest only mortgage payment (125% for basic rate tax payers) based on our stressed rate, currently 6.90%. 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. 

This product is not a regulated mortgage contract unless the tenant is a relative of the borrower

Fees:

  • Application fees can be added to the mortgage and are refundable if the mortgage does not take place. 
  • A valuation of the property 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. The fee for this is payable in advance and cannot be refunded once the valuation has taken place.
  • A mortgage exit administration fee (MEAF) applies when you repay your mortgage. You may have to pay this if:
    Your mortgage term comes to an end;
    You transfer the loan to another lender; or
    You transfer borrowing from one property to another.

Other charges:

  • Charges applying to the ongoing administration of your mortgage are detailed in our Tariff of Charges leaflet, which you will be given before your mortgage completes. They can also be found on our website. 

Portability:

  • All our mortgages are portable, which means that if you move house within an early repayment charge period the product can be transferred to your new mortgage, up to the value of the product outstanding at redemption, without charge.