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Bricks and mortar boards loan from Chelsea

Chelsea Building Society is targeting its new buy-to-let loan at landlords looking to rent property to students.

Previous buy-to-let products from the society excluded properties purchased as student accommodation.

The student buy-to-let loan is based on the society&#39s standard variable rate plus 0.25 per cent, giving a current rate of 5.94 per cent. There is an additional 0.75 per cent discount for the first 12 months.

An early repayment fee of 2 per cent of the amount repaid applies for the first five years but 20 per cent of the capital may be repaid each year before incurring additional charges.

The product is available on loans between £40,000 and £325,000. Maximum loan to value is 80 per cent. Borrowers face an administration fee of £245, including a £195 application fee, which is added to the loan.

Like all Chelsea mortgages, IFA remuneration is on a discretionary basis.

Spokeswoman Melissa Roberts says: “One of the big features of the product is that it is a simple and fair product which allows people wanting to get into this market to raise finance.”

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