Ireland’s largest mortgage lender, which has its UK base in Hammersmith, London, announced this week that it will lend up to £500,000 on an existing property to be re-mortgaged and let. It will then lend up to £500,000 on the new purchase going forward, which the borrower is buying to be their main residence.
The new £1m limit replaces the £500,000 threshold that has applied until now on self-certification let-to-buy deals.
Additionally, the lender has raised LTVs to 85% on the existing property and 90% on the new property.
Mike Healy, Irish Permanent Senior UK Manager, said: “Not many lenders will do 90% self-certification and would certainly not do it with an exposure of £1m. We are meeting a need where self-employed applicants wish to retain their existing home and at the same time want to buy a new home.”
“We have responded to what our brokers have been asking for. They want their self-employed clients to be able to get larger advances and more helpful LTVs.”
Irish Permanent offers an uncapped 0.5% procuration fee on both the re-mortgage and the purchase going forward. This results in a potential procuration fee of £5,000 if the advance is £1m in total.
The let-to-buy product is supplied as a tracker at 1.25% over Bank Base for the life of the loan, discounted by 0.26% for the first two years. This gives a current rate of 4.74% (APR 5.3%).
There is no MIG charged on the product up to 90% LTV. The completion fee is £350 and there is a 5% redemption penalty during the first two years of the loan.
