Independent Mortgages Direct NE has been selected to pilot the new Mortgage Trust/Castle Trust 85% Buy To Let purchase product as follows:-
The product is a combination of a standard buy to let mortgage via Mortgage Trust up to 70% LTV and a Castle Trust equity loan up to 20% LTV (joint maximum 85% LTV) over a maximum 10 year term and is available for property purchases above £75,000 to experienced landlords with five properties or more and a combined earned income over of £25,000 excluding rental income.
There are no monthly payments payable on the 15% equity loan, instead 30% of the capital appreciation (i.e. double the equity loan) is repaid to the equity lender at the end of the term or when the property is sold, whichever is the earlier. In the above scenario the landlord borrows 85% of the purchase price but only pays interest on 70% leading to a much improved cash-flow. Furthermore, with the rent to interest cover calculated only on the main mortgage, this product allows you to sensibly borrow more on lower yielding properties – ideal for those high value/low yielding prime properties.
The pricing on the main buy to let mortgage is competitive with two options available, both having a free valuation and £150 Application Fee as follows:-
3.99% Fixed until 31/01/2017 with a 1.5% Arrangement Fee
4.25% Fixed until 31/01/2018 with a 1.0% Arrangement Fee
This new product is great news for landlords looking to expand their portfolios, if would like to discuss a particular purchase in further detail give us a call on 0800 0350095.