6.09% variable, which includes a 1.76% discount from our Standard Variable Rate for 2 years.

Our Standard Variable Rate* for the remainder of the term, currently 7.85%.

7.9% APRC

Fees

Arrangement fee - £1,500 (Can be paid up front or added to the loan)

Mortgage exit fee - £100 (payable when the mortgage is fully repaid)

Standard Valuation Fee – (Amount varies dependent on the property value)

Incentives

None

A full or partial capital repayment, which exceeds 10% of the capital balance amount in any one year during the discount period, will attract an early repayment charge of 2%.

Purchase or remortgage

Capital & Interest or Interest-Only

75%

Minimum £100,000 – Maximum £1,000,000

Portability

This product is portable and can be transferred from the existing property to a new property.

Interest rate floor

The interest rate for this mortgage has a ‘floor’, which means that it will never fall below 3.50% during the discount period.

Adding fees

If the arrangement fee is added to the loan, it will attract interest increasing the total amount payable over the term of the mortgage.

Eligibility

Property must be in England and Wales with a value of £140,000 or more.

If owned by a Limited Company, it must be a Special Purpose Vehicle Limited Company registered in England and Wales.

Available for HMO properties.

No maximum portfolio size.

Mortgages are subject to underwriting.

Affordability

For basic rate taxpayers and limited companies, the projected rental income must be at least 125% of the mortgage payment at an assumed interest rate of 7.60%. This increases to 140% for higher rate taxpayers.

Personal income can be considered to top this up if there is a shortfall.

This information is to help you understand the typical cost of this mortgage and is not representative of your personal circumstances.

A mortgage of £198,709.00, payable over 24 years, on an interest-only basis, initially on a variable rate of 6.09% for the first 2 years and then on our Standard Variable Rate, currently 7.85%, for the remaining 22 years, would require 24 monthly payments of £1,008.45 followed by 264 monthly payments of £1,299.89.

The total amount payable would be £568,257.76, made up of the loan amount (£198,709.00), plus interest (£367,373.76), Arrangement fee (£1,500), Standard Valuation Fee (£325), Solicitor Fee (£250), and a Mortgage Exit Fee (£100).

The overall cost for comparison is 7.9% APRC.