New semi-exclusive buy to let mortgage rates up to 85% LTV

Good news for landlords looking to maximise their gearing. There is now another buy to let lender who offers borrowers up to 85% loan to value and Mortgages for Business is one of only five brokers who have been given access to these special rates.

Recently Kensington joined Kent Reliance as the second of only two lenders now operating in this space. A few other lenders will go to 80% LTV but for most, the maximum permitted leverage is 75% LTV. (Loans of more than 85% LTV have not been available since before the credit crunch).

As you might expect, these rates are a little bit more expensive than many other buy to let mortgages but they are worth considering if you have only a 15% deposit.

  • 2 year fixed rates start at 4.19% (5.1% APR)*          
  • 5 year fixed rates start at 4.89% (4.4 APR)**                  

These will be of particular interest to landlords operating via an SPV limited company, as the stress test calculation is more favourable than the one used for landlords borrowing personally. This means you can really maximise your borrowing, as the example below demonstrates.

Borrowing personally:

Rate: 4.89% (4.4% APR) 5 year fixed**

Rental assessment calculated at: 145% @5.50%

Property value: £275k

Rental income: £1,400pcm

Maximum loan: £210,658 (77% LTV)

 

Borrowing via an SPV Ltd Co:

Rate: 4.89% (4.4 APR)5 year fixed***

Rental assessment calculated at: 125% @5.50%

Property value: £275k

Rental income: £1,400pcm

Maximum loan: £233,750 (85% LTV)

 

With some of their remortgage products both the valuation and lender arrangement fee is waived, providing even more of an incentive to find out how these mortgages might work for your circumstances.

We are not sure how long these rates will be available, so if you are interested, please do get in touch to discuss. There are a number of ways you can get contact us:

My direct line is: 01732 471648

My email is: calumo@mortgagesforbusiness.co.uk

Request a call back at a time to suit you

 

 

 SMALL PRINT:

*Fixed at 4.19% for 2 years reverting to 4.95% (LIBOR + 4.3%, variable). Purchase or Remortgage. Overall Cost for Comparison: 5.1% APR. Loan to Value: 85% loan to value up to £1,00,000. Lender Arrangement Fee: 1.5% of the loan amount. Early Repayment Charge: 3% of the amount being repaid for the first year, then 2% until the end of year 2. Broker Fee: We do not charge for initial advice. Our standard broker fee is £597 if we are able to get you an acceptable, formal mortgage offer from a lender. We will keep any commission payments made by the lender. Alternatively, we will rebate to you any commission paid by the lender to us and charge you a broker fee of typically 1% of the total loan amount (exact percentage will depend upon the size and complexity of the mortgage application). Repayment Options: Interest only or repayment. . Rent to Interest Cover: 145% at 5.50%. No requirement.

 

**Fixed at 4.89% for 5 years reverting to 3.80% (LIBOR + 3.15%, variable). Purchase or Remortgage. Overall Cost for Comparison: 4.4% APR. Loan to Value: 85% loan to value up to £1,00,000. Lender Arrangement Fee: 1.5% of the loan amount. Early Repayment Charge: 4% of the amount being repaid for the first year, then 3% until the end of year 2, then 1.5% until the end of year 3, then 1% until the end of year 5. Broker Fee: We do not charge for initial advice.  Our standard broker fee is £597 if we are able to get you an acceptable, formal mortgage offer from a lender. We will keep any commission payments made by the lender. Alternatively, we will rebate to you any commission paid by the lender to us and charge you a broker fee of typically 1% of the total loan amount (exact percentage will depend upon the size and complexity of the mortgage application). Repayment Options: Interest only or repayment. . Rent to Interest Cover: 145% at 5.50%. No requirement.

 

***Fixed at 4.89% for 5 years reverting to 3.80% (LIBOR + 3.15%, variable). Purchase or Remortgage. Overall Cost for Comparison: 4.4% APR. Loan to Value: 85% loan to value up to £1,00,000. Lender Arrangement Fee: 1.5% of the loan amount. Early Repayment Charge: 4% of the amount being repaid for the first year, then 3% until the end of year 2, then 1.5% until the end of year 3, then 1% until the end of year 5. Broker Fee: We do not charge for initial advice.  Our standard broker fee is £597 if we are able to get you an acceptable, formal mortgage offer from a lender. We will keep any commission payments made by the lender. Alternatively, we will rebate to you any commission paid by the lender to us and charge you a broker fee of typically 1% of the total loan amount (exact percentage will depend upon the size and complexity of the mortgage application). Repayment Options: Interest only or repayment. . Rent to Interest Cover: 125% at 5.50%. No requirement.

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