Type: Adverse credit fixed rate buy-to-let mortgage
Fixed term: Three years
Fixed rate: Up to 90% of valuation – 6.85%, up to 85% of valuation – 6.45%, up to 80% of valuation – 6.15%, up to 70% of valuation – 5.95%
Minimum loan: £25,001
Maximum loan: Up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation subject to a maximum of £400,000
Income multiples: rental income must be at least 100% of the mortgage repayments
Conditions: Up to £500 in CCJs acceptable, no arrears allowed, bankruptcy/IVA not acceptable, 0.1% added to rate for flexible options, unlimited properties subject to a total maximum of £2m,
Flexible features: Overpayments, underpayments, payment holidays, lump sum withdrawals, interest calculated daily subject to 0.1% loading to rate
Arrangement fee: 1.5% of the original loan subject to a £499 minimum
Redemption fee; 6% of the amount repaid in the first three years, thereafter interest until the end of the month
Introducer’s fee: 0.5% of the original loan
Tel: 08707 590170
This three-year fixed rate buy-to-let mortgage is available is available to borrowers with near prime adverse credit.
Mint Financial Services IFA Adrian Kidd says: “With a headline rate at 5.95 per cent available at 70 per cent LTV, this product looks very interesting for clients who have had some difficulties, have a buy-to-let property and have a good amount of equity or deposit available.”
He believes the rental calculation is extremely competitive at 100 per cent of the pay rate, while the introducer’s fee is standard.
“The fees are a touch high but can be justified because of the rental calculation. The deal also allows a good size portfolio despite being aimed at people with adverse credit,” he says.
Looking at the less appealing features of this deal, Kidd’s only real dislike is the 1.5 per cent arrangement fee.
Scanning the market for the main competition Kidd says: “ Chelsea has a two-year fixed rate at 6.39 per cent and a slightly worse rental calculation up to maximum of 85 per cent LTV. Pink Home Loans beats Chelsea on rate and rental calculation.
“Fixed rates have been coming down in last few days so I would expect something more competitive from other lenders.”
Suitability to market: Good
Competitiveness of rate: Good
Adviser remuneration: Average