Keystone Buy to let Mortgages is one lender that has reduced the fixed interest rates they have available. They also have a range of products up to 80% loan to value for standard BTL properties.

Key Criteria:

  • No minimum income requirements – Self-employed/company directors must provide last 2 years’ accounts/SA302’s.
  • Must be a homeowner.
  • No maximum number of properties in your current portfolio.
  • £75000 minimum valuation/purchase price on standard BTL’s and £200,000 on a HMO
  • Borrowing can be in individual names, limited companies or an LLP.
  • Up to 6 applicants can be on the mortgage.
  • Maximum age 85 at the end of the mortgage term.
  • Will consider some expats that are UK property owners.
  • Standard BTL’s, HMO’s, multi-lets and multiple units under one freehold, all acceptable.
  • Remortgages considered within 6 month’s ownership.

Standard BTL products include:

  • 80% Loan to value/purchase price
  • 5.29% 3 year discounted rate – 2.5% arrangement fee added to the loan.
  • 5.74% 5 year fixed – 2.5% arrangement fee added to the loan.
  • 75% Loan to value/purchase price
  • 4.99% 3 year fixed – 2.5% arrangement fee added to the loan.
  • 5.24% 5 year fixed – 2.5% arrangement fee added to the loan.

HMO rates include:

  • 75% Loan to value/purchase price
  • 5.19% 3 year fixed – 2.5% arrangement fee added to the loan.
  • 5.44% 3 year fixed – 2.5% arrangement fee added to the loan.

In summary, Keystone provides a good option for the experienced investor who may be experiencing challenges obtaining standard BTL finance due to number of properties owned, or the type of security they are looking to purchase or refinance.

Also, they do not credit score, and they only carry out a credit search with a decision to lend made by an underwriter and not a computer.

Buy To Let Product Highlights

Birmingham Midshires

75% loan to value/purchase price

  • 3.89% 2 year fixed – £1495 arrangement fee (loans over £250000)
  • 4.09% 2 year fixed – £995 arrangement fee (£500 cash back)
  • 4.34% 3 year fixed – 1.0% arrangement fee
  • 5.09% 5 year fixed – 1.25% arrangement fee

Key Criteria

  • No minimum income
  • £40000 minimum purchase price/valuation
  • Must be a homeowner
  • Rental income must cover 125% at a minimum of 5%

 The Mortgage Works

75% loan to value/purchase price

  • 2.99% 2 year fixed – 2.5% fee
  • 3.89% 2 year fixed – £995 fee
  • 4.29% 2 year fixed – No fee

80% option

  • 4.14% 2 year fixed – 2.5% fee

Key Criteria

  • No minimum income for experienced landlords and owner occupiers
  • £50000 minimum valuation
  • Must be homeowner
  • Maximum age 90 at the end of the term

Mortgage Trust

80% loan to value/purchase price

  • 4.35% fixed until 31/7/2016 – 1.75% arrangement fee, £150 booking fee, free valuation
  • 4.99% fixed until 31/7/2016 – £995 arrangement fee, £150 booking fee, free valuation

Key Criteria

  • £25000 minimum income
  • £75000 minimum valuation/purchase price
  • Must be a homeowner
  • Rental income to cover 125% at 5%

 Virgin Money

75% loan to value/purchase price

  • 3.35% 2 year tracker – 2.5% arrangement fee, £750 cash back
  • 3.59% 2 year fixed – 2.5% arrangement fee, £750 cash back
  • 4.49% 5 year fixed – 2.5% arrangement fee, £750 cash back

Key Criteria

  • £40000 minimum purchase price
  • First time buyers acceptable
  • £25000 minimum income
  • Rental income to cover 125% at 5.99%

 Kent Reliance

85% loan to value/purchase price

  • 4.89% 2 year discounted rate, 2.5% fee
  • 4.99% 2 year fixed 2.5% arrangement fee

80% loan to value/purchase price

  • 4.69% 2 year fixed  2.5% arrangement fee

Key Criteria

  • Must be a current residential  owner occupier
  • Rent to cover 125% of the mortgage payments
  • £75000 minimum value/purchase price
  • No Minimum Income

 Woolwich

Available for up to 6 multiple units under one freehold in addition to standard single BTL properties.

75% loan to value/purchase price

  • 3.59% 2 year fixed, £1999 arrangement fee
  • 4.49% 5 year fixed, £1999 arrangement fee

Key Criteria

  • Must be residential homeowner
  • £25000 minimum income
  • Flat fees for larger loans
  • £50000 minimum loan
  • Rent to cover 125% at interest pay rate

 To Fix or Not To Fix?

Many of our clients continue to monitor the interest rate predictions, and we have been reviewing portfolios for clients to see if there are any opportunities to fix interest rates again, and protect the income from the portfolio.

Many of our clients have taken advantage of the following: if you currently hold a BTL mortgage that has reverted to a variable rate of around 4.5% or above with BM Solutions, you still have the opportunity to take out a new fixed rate now, thus saving some money initially and protecting yourself from future interest rate rises. The great benefit of doing this is that there are no costs at all associated with these transactions, and also no further underwriting or credit searches to be carried out.

If you would like me to look at your existing loans please contact me. We will just need some basic information and can check immediately whether this can work for you and how much money you could save on your mortgage payments.

As always if you have any mortgage enquiries or would like my opinion on any financing matter, please give me a call or email me.

Stuart Yardley

Trafalgar Square Financial Planning Consultants
2nd Floor, 6 Morie Street
London
SW18 1SL

T: 0044 (0) 208 870 8787
F: 0044 (0) 208 870 8788
M: 0044 (0) 7973 172444
E: [email protected]