Type: Fixed rate buy-to-let mortgage
Fixed term: Until July 31, 2011
Fixed rate: 6.29%
Minimum loan: £25,001
Maximum loan: Up to 75% of valuation subject to a maximum of £500,000
Income multiples: Rental income must be at last 100% of the mortgage repayments
Conditions: Capital repayments of up to 10% a year allowed without penalty, up to five properties allowed within total maximum of £2m
Arrangement fee: 2% of the original loan
Redemption fee: 5% of the amount repaid in the first three years
Introducer’s fee: 0.55% of the original loan
Tel: 08707 590170
This buy-to-let mortgage is fixed at 6.29 per cent for three years and is available for loans up to 75 per cent of valuation within a £500,000 maximum.
Bestinvest mortgage manager Peter O’Donovan thinks this product is well priced and regards the arrangement fee as in line with the lower buy-to-let rates. “The rental income requirement is calculated on the payrate at 100 per cent, which should make it easier for applicants to meet. It is available for purchase and remortgage, with some capital raising allowed. New build and ex-council properties considered, while overpayments are allowed.
Turning to the less appealing features of this deal O’Donovan says: “ The arrangement fee is a little high, even though it is in line with other lenders. The maximum LTV could be 80 per cent to make it more available, although Bank of Ireland mortgages is obviously managing work flows.”
Highlighting deals that could provide competition, O’Donovan mentions Astra’s two-year fix at 6.34 per cent, with a 1.5 per cent fee. BM Solutions 6.29 per cent three-year fixed, which has a 2 per cent fee and Mortgage Express at 6.14 per cent for three or five years with a 2.5 per cent fee are also suggested.
O’Donovan concludes: “Bank of Ireland is still a major player in the buy-to-let market and this product shows its commitment to continuing to provide competitive products.”
Suitability to market: Good
Competitiveness of rate: Good
Adviser remuneration: Good