Published 22 August 2012 · Last reviewed 24 May 2013 · Older article — see current rates
4.48% Free Legal’s up to 75% Loan to Value fixed fee which is great for larger loan sizes and people near the retirement age.
We have now got access to great new exclusive buy to let product for professional landlords which doesn’t require a minimum income as long as you already have buy to let properties within your portfolio. The great news is that the loan term on this product is until the age of 85 years old.
The product is on a variable rate of 4.48 up to 75% LTV plus it has low ERC’s down to 1% in year 3+ overpayments of up to £5000 can be made yearly without any charge which enables the reduction of the loan during the term of the mortgage. You can also have this as a full interest only mortgage.
Unlike some other products there is no minimum income recuirment and the unique feature of this product is its fixed completion fee of £1,999 which can really work for the larger loan sizes as competitors will often charge a percentage of the loan amount sometimes being as high as 2.5% to 3 .5% of the loan size which can be very expensive.
On remortgage properties this product has an added benefit of offering free legals which also saves money up front. The product is up to 80% loan to value for purchases or remortgages and you can capital raise funds to purchase other buy to let properties which is a good selling point but that rate will be different to the one quoted on 80% deals.
Although the property has no minimum income required for professional landlords there is a £25,000 minimum requirement for first time buyer landlords. You can have up to 5 let properties in the background with one of them being already mortgaged with the lender.
The final selling point on this product is that the buy to let lender does not credit score your application which means it is dealt with by underwriter on a case-by-case basis not a computer that just says “no”. However, this does not mean that you do not have to have good credit rating.
If you are an experienced property professional or are reaching your retirement age which is typically classed as 65 this product is certainly very competitive and can ensure you can continue the development of your portfolio up to the age of 85 years old.
Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London.