Post Office for Intermediaries Buy to Let 5 year fixed rate 3.75% rate
The Post Office for Intermediaries Buy to Let 5 year fixed rate 3.75% rate is designed to attract buy to let landlords with the long term security of a low set payments. The lender is fairly new on the scene so could be useful for landlords who want to spread their buy to lets over multiple lenders.
Initial Rate: 3.47% Subsequent:4.99% The overall cost for comparison is 4.78%
- Features: Fixed until 31/12/2019
- Minimum deposit / equity: 25%
- Valuation fee: £310
- Other main lender fees: Arrangement fee £1,495
- Early repayment charges: 5% in the fixed period
MY PRODUCT COMMENTS: The Post Office for Intermediaries allows landlords to have a maximum of 3 mortgages with them, and 5 mortgages across all lenders. For remortgages you must have owned the property for at least 12 months so it probably rules out developers. The short minimum lease requirement of 45 years at the end of the mortgage is quiet generous and could particularly help, in Central London.
MY LENDER COMMENTS: The Post Office for Intermediaries is effectively Bank of Ireland for Intermediaries. They are fairly new re-entrants to the market and judging by their current excellent rates it appears like they are looking to crank up the volume.
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Rates current as at 11/11/14. The overall cost for comparison is based on a property value of £250,000 over a 25 year term. Repayment for Residential and Interest only for Buy-to-let. The product is based on a property in England (but may also be available in other countries). Eligibility will depend on your own personal circumstances.
The purpose of this web is for information only and is based on a fictitious illustrative scenario. It does not constitute a Mortgage Offer in any way.
It is essential that you seek independent mortgage advice as a suitable product will be based on your own individual circumstances. An interest rate should not be read in isolation, and you should refer to your personal key facts illustration and Mortgage Offers for full terms and conditions. If anything is unclear it should be discussed fully with both your mortgage and legal advisors before entering into a mortgage contract with the lender.
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Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines.