LIMITED EDITION 2.99% (4.6%) BTL mortgage for loans up to £3m

Trying to borrow as much as possible? Then you may want to consider this limited edition buy to let mortgage. It’s a particularly attractive rate for basic rate tax payers looking to borrow personally and landlords borrowing via a limited company.

If you, like many others have struggled to get the loan amount you require since the PRA required lenders to apply stricter rent to interest calculations on 1st January this year, then this limited edition rate may be the answer.

Available only via intermediaries this buy to let mortgage is available to both individuals and limited companies. Importantly, the lender offers a bespoke ICR calculation to reflect your specific tax position, stressed at a pay rate of 2.99%.

Why is this so good?

Most BTL lenders are applying a standard ICR calculation of 145% to all individual applicants regardless of the actual tax rate they pay. This means borrowing is restricted even if you are not affected by the changes in income tax relief on finance costs (including mortgage interest).

This limited edition rate takes your tax position into account meaning you might be able to borrow more.

How does it work?

Here are four examples based on a rental income of £1,000 pcm. Do bear in mind that the total loan amount can’t exceed 75% of the property value.

Basic rate tax payer borrowing personally (125% @ 2.99%)
You can borrow up to: £321,070 (321 x your monthly rental income)

Higher rate tax payer borrowing personally (145% @ 2.99%)
You can borrow up to: £276,784 (276 x your monthly rental income)

Additional rate tax payer borrowing personally (165% @ 2.99%)
You can borrow up to: £243,235 (243 x your monthly rental income)

Basic, higher and additional rate tax payer borrowing via Ltd Cos (125% @ 2.99%)
You can borrow up to: £321,070 (321 x your monthly rental income)


What product is on offer?

2.99% (4.6% APR) fixed for 5 years*
It comes with some pretty great features too…

Financials:

- Borrow up to £3m (min loan size £350k)
- Up to 75% LTV
- No limit on the number of other mortgaged properties you own
- You can use your own solicitor (providing the firm is listed on the lender’s extensive panel)

Borrowers:

- Individuals and SPV limited companies accepted
- No minimum income requirements for loans under £1m
- You can be up to 80 years old on application
- First-time and experienced landlords accepted

Properties accepted:

- Standard BTLs
- Ex-council houses
- Eco homes
- New builds
- HMOs

What to do if you want this rate     

Lenders don’t tend to give much (or any!) advance warning of product withdrawals, so we are unable to tell you how long this limited edition rate will be available. It is worth bearing in mind that an offer on this product is valid for six months so you can secure this rate now in advance of your current deal expiring!

For more information you can call me directly on 01732 471608 or you can speak to any of my colleagues on 0345 345 6788.

Get a personalised quote for this product now

 

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Common areas of concern when borrowing via a limited company for buy to let
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FAQs on Ltd Co borrowing for buy to let
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04.10.16 
How the new buy to let underwriting standards will affect lenders and borrowers
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*2.99% 5 year fixed
Fixed at 2.99% for 5 years reverting to LIBOR + 4.65% (currently 5.00%, variable). For purchases and remortgages. Early Repayment Charge: 4.00% of the amount being repaid for the first 2 years, then 3.00% until the end of year 4, then 2.00% until the end of year 5. Overall Cost for Comparison: 4.6% APR. Loan to Value: 75% loan to value up to £750,000 loan amount, 70% loan to value up to £1,000,000 loan amount and 60% loan to value up to £3,000,000 loan amount. Lender Arrangement Fee: 2.00% added to loan. Broker Fee: A broker fee of £497 will apply (other fee options available).

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