Buy to Let – First Time Landlord 2 Year Discount

Maximum Loan to Value (LTV) 75% LTV
Initial Variable Interest Rate, currently: 3.49% (1.75% discount from our Standard Variable Rate for 2 years. The discount is subject to a minimum interest rate “floor” of 2.00%).
Followed by our Standard Variable Rate thereafter, currently: 5.24% (The Society’s Standard Variable Rate is set by its Board of Directors).
The Overall Cost for Comparison is: 5.20% APRC
Interest Calculated: Daily

Age
Minimum – 21 years
Maximum – No Maximum Age Limit

Term
Minimum – 2 years
Maximum – 40 years

Minimum Loan £75,000

Maximum Loan £300,000 (subject to LTV)

Available to customers who are a first time landlord and intend to use the property for investment purposes only. Customer must not be a first time buyer.  Not available for flats.  Further Buy-to-Let lending criteria applies. For full details please contact our experienced underwriters on 01257 235 001 – Option 2 or at intermediaries@chorleybs.co.uk

 

Applicants must have a minimum gross annual income of £20,000 (single applicants) and £25,000 (joint applications).  Our decision to lend is based on your client(s) meeting minimum income requirements and Income Coverage Ratios (ICRs).

  • Basic rate tax payers – rental yield must cover 125% of the mortgage interest payment when stress tested at the higher of 5.50% or the mortgage interest rate plus 2.00%.
  • Higher and additional rate tax payers – rental yield must cover 148% of the mortgage interest payment when stress tested at the higher of 5.50% or the mortgage interest rate plus 2.00%
Application Fee No Application Fee
Scheme Fee 0.75% of the advance (can be added to the loan, subject to LTV, or paid on completion. Fees added to the loan will accrue interest. Further details are available on application).
Mortgage Exit Administration Fee £75 (paid on redemption).
Valuation Fee Paid directly to valuer by the applicant – see Valuation Fee Scale for details.

A standard mortgage valuation is required on all properties.

Procuration Fee A Procuration Fee will be paid to the Introducer by the Society upon completion of the mortgage. Please refer to your mortgage Introducer for details.
Early Repayment Charge 1.75% of the redemption balance for 2 years
Overpayments The Society will allow overpayments of up to 10% of the capital balance per annum without invoking an early repayment charge.
Portability This mortgage is not portable.
Insurance Landlords insurance on the property to be mortgaged is compulsory.
Representative Example The following is a representative example based on a mortgage of £204.375 payable over 25 years initially on a discounted variable rate of 3.49% for 2 years followed by our Standard Variable Rate of 5.24%. In this example you would make an initial payment of £1411.86 then 23 monthly payments of £1022.10 followed by 276 monthly payments of £1210.60.

 

The total amount payable would be £361,233.57 made up of the loan amount plus interest of £154,670.76 and the following fees, a Scheme Fee (£1532.81), a Chaps/Telegraphic Transfer fee (£25.00), a Valuation Fee (£225.00), a separate representation fee (£330.00) and a Mortgage Exit Administration Fee (£75.00).

 

The overall cost for comparison is 5.20% APRC representative.

 

Note: What you will pay may vary from this and will depend on your personal                             circumstances.

Chorley Building Society Investment Buy-to-let mortgages are not regulated by the Financial Conduct Authority.