The mortgage has no over-hanging redemption penalties and the rental income calculation is based on 4.99%.
Product Information:
Buy-to-let Mortgage
- 4.99% Fixed until 30/04/2008 — 3 years
- No overhanging redemption penalties
- Rental income calculation based on 125% of the pay rate of 4.99%
- Max LTV 85% (75% First Time Landlords)
- 1.5% arrangement fee added to the loan — even at 85%
- Early repayment charge - 5% until 30/04/2008
- Facility of repaying up to 10% of the mortgage balance annually without charge
- LTV’s and rentals calculations averaged across entire portfolio
Paul Howard, associate director, The Mortgage Works, said: "This is a highly attractive buy-to-let proposition which will appeal to landlords, especially those seeking to increase their property holdings. The 3 year fix of 4.99%, with no overhanging redemption penalty, gives the borrower the certainty of a very low interest rate coupled with a rental calculation which should cover most, if not all, property transactions. The fee of 1.5% can be added to the loan, even at 85% loan to value. In addition, our method of averaging rents and ltv’s across a portfolio allows landlords to use the strength of their entire holding to gear up to the maximum and acquire further investment property. From early intermediary feedback we know this product is a winner."
