(BT32) 5 Year 2.71% Discount Floored Limited Company

This five-year discount mortgage comes with an interest rate of 2.49%, which includes a 2.71% discount from our Standard Variable Rate for 5 years, followed by our Standard Variable Rate for the remainder of the term, currently 5.20%. The interest rate for this mortgage is 'floored', which means that while the rate may increase, it will never fall below 2.49% during the discount period.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

(BT32) 5 Year 2.71% Discount Floored Limited Company

Initial rate

2.49%

Subsequent Rate (SVR)

5.20%

Overall cost for comparison

4.50% APRC

Maximum loan to value (LTV)

75%

Incentives

None

Arrangement Fee

£1,499

Early repayment charge

Yes

Product Summary

Initial Rate

This five-year discount mortgage comes with an interest rate of 2.49%, which includes a 2.71% discount from our Standard Variable Rate for 5 years, followed by our Standard Variable Rate for the remainder of the term, currently 5.20%. The interest rate for this mortgage is 'floored', which means that while the rate may increase, it will never fall below 2.49% during the discount period.

Portability

This mortgage product is portable to a new residential mortgage on a different property when the new mortgage is taken out simultaneously with the repayment of the existing mortgage.

You would need to meet our credit and affordability requirements for the new mortgage, the new property would need to be acceptable to us, and approval of a new mortgage would be subject to our prevailing Lending Policy. 

Repayment Method

Capital & Interest or Interest-Only.  

Restrictions

Lending restricted to England and Wales

The company must be a Special Purpose Vehicle Limited Company registered in England & Wales for the purpose of owning residential property for rental. It must be owned by individual shareholders, where the Shareholders, Directors, and controller(s) are UK based individuals. Other criteria relating to the Ltd Co also applies. An unsecured personal guarantee is routinely required from each Shareholder and Director.

Minimum property value of £200,000 is required.

ICR Only (130% at a stressed rate of 5.49%)

The loan will be based on property rental and expenses. Personal income cannot be taken into account to support a larger loan. Standard Buy to Let only.

Maximum portfolio size of 4 (including a proposed purchase property) 

Loan Size

Minimum £150,000 - Maximum £500,000

Fee Details

£1,499 – This can be added to the loan on completion however this will result in interest being charged on it making the overall fee greater over the term of the mortgage.

Early Repayment Charge Details

A full or partial capital repayment, which exceeds 10% of the capital balance amount in any one year during the discount period, will attract an early repayment charge of:

5% in the 1st year

4% in the 2nd year

3% in the 3rd year

2% in the 4th year

2% in the 5th year 

Representative Example

A mortgage of £213,800 payable over 21 years on an interest-only repayment basis with an initial rate of 2.49% which includes a 2.71% discount from our Standard Variable Rate for 5 years and then on our Standard Variable Rate, currently 5.20% for the remaining 16 years. The first 5 years would require 60 monthly payments of £443.64 followed by 192 monthly payments of £926.47. The total amount payable would be £420,584.64 made up of the loan amount plus interest (£204,500.64), Arrangement Fee (£1,499) Standard Valuation Fee (£365), Solicitor Fee (£250), Funds Transfer Fee (£15) and a Mortgage Exit Fee (£155).

The overall cost for comparison is 4.50% APRC representative

Important Notes:

Once the product matures the interest rate will revert to our Standard Variable Rate (SVR) unless a new product is taken out. Our SVR is currently 5.20%. This is set by us and may go up or down in the future.

The Overall Cost for Comparison is given as the Annual Percentage Rate of Charge (APRC) and includes all charges incurred relating to the mortgage/product. The APRC enables you to compare the cost of different products.

The Maximum Loan to Value (LTV) is calculated by us using your current mortgage balance and our current assessed valuation of your property.

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0161 429 4318

Monday - Friday

08:45 - 17:00

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH REPAYMENTS ON YOUR MORTGAGE