5.14% variable which includes a 2.46% discount from our Standard Variable Rate for 2 years.

Our Standard Variable Rate* for the remainder of the term, currently 7.60%.

7.5% APRC

Fees

Arrangement fee - £999 (Can be paid up front or added to the loan)

Mortgage exit fee - £100 (payable when the mortgage is fully repaid)

Standard Valuation Fee – (Amount varies dependent on the property value)

Incentives

None.

A full or partial capital repayment, which exceeds 25% of the capital balance amount in any one year during the discount period, will attract an early repayment charge of 2%.

Purchase or remortgage

Capital & Interest or Interest-Only

LTV     Loan amount

75%     £350,000

70%     £350,000 - £500,000

65%     £500,000 - £750,000

60%     £750,000 - £1,000,000

Minimum £100,000 – Maximum £1,000,000

Portability

This product is portable and can be transferred from the existing property to a new property.

Interest rate floor

The interest rate for this mortgage has a ‘floor’, which means that it will never fall below 3.50% during the discount period.

Adding fees

If the arrangement fee is added to the loan, it will attract interest increasing the total amount payable over the term of the mortgage.

Eligibility

Property must be in England and Wales with a value of £200,000 or more for purchases or £140,000 for remortgages.

Property may be owned in the borrower’s personal name or through a Limited Company registered in England & Wales, which is an SPV for the purpose of owning a property for rental. A personal guarantee is required.

Applicants must have been a UK resident in the last 3 years and have a minimum income of £30,000 (sterling equivalent) from employment.

Applicants can be resident in any country except:

• a country subject to UK sanctions.
• a country defined as ‘high risk’ by the Government.

Applicants must have a UK bank account to make mortgage payments and receive rental income and a UK address for receiving statements and notices (this can be the security address)

Maximum portfolio 9 properties.

Mortgages are subject to underwriting.

Affordability

The projected rental income must be at least 140% of the mortgage payment at the product initial rate plus 2%. Personal income cannot be considered to top this up if there is a shortfall.

This information is to help you understand the typical cost of this mortgage and is not representative of your personal circumstances.

A mortgage of £150,000.00, payable over 20 years, on an interest-only basis, initially on a variable rate of 5.14% for the first 2 years, and then on our Standard Variable Rate, currently 7.60%, for the remaining 18 years, would require 24 monthly payments of £642.50 followed by 216 monthly payments of £950.00.

The total amount payable would be £372,044.00, made up of the loan amount (£150,000.00), plus interest (£220,620.00), Arrangement Fee (£999), Standard Valuation Fee (£325), and a Mortgage Exit Fee (£100).

The overall cost for comparison is 7.5% APRC.