Large HMO Buy-to-Let Light Refurbishment Three Year Discount Mortgage 65% LTV
For experienced House in Multiple Occupation (HMO) investors looking to purchase a new HMO property or remortgage an existing HMO mortgage, that requires a level of light refurbishment prior to renting the property. This may be cosmetic work, work to meet HMO regulation or light internal structural work for additional bedrooms. A large HMO is defined as where mandatory licensing is required, this is for all HMOs occupied by five or more persons forming more than one household.
An initial rate of
(1.7% discount off our SVR)
variable for three years,
followed by our SVR, currently
variable for the rest of the mortgage.
The overall cost for comparison is
|Loan to Value (LTV)||65%|
|Arrangement fee||2.50% of the loan Other fees may apply.|
|Available for remortgages||Yes||Early repayment charges||3% of the advance|
Your property may be repossessed if you do not keep up repayments on your mortgage
The following representative example is intended to allow you to easily compare products across lenders and does not reflect what your actual monthly payment or APRC could be. Please contact us if you have any questions regarding this.
A mortgage of £87,491 payable over 20 years, initially on a Discounted rate for 3 years at 3.94% and then on our current Standard Variable Rate Mortgage of 5.64% (variable) for the remaining 17 years, would require 36 monthly payments of £280.26 and 204 monthly payments of £401.18.
The total amount payable would be £177,353.57 made up of the loan amount plus interest (£89,897.57), an application fee of £200 and a redemption fee of £80.
The overall cost for comparison is 5.6% APRC representative.
Fees may differ to those shown in this representative example. Current fees can be found in our tariff of charges.
Additional product information
Rental cover required:
- Remortgage without additional borrowing:
- The rent received must be at least 160% of the mortgage payment at the initial rate.
- All other contracts:
The rent received must be at least 160% of the mortgage payment at 2% above the initial rate, or 5.5%, whichever is higher.
- If the amount of lending required is the maximum percentage of end value, state this clearly on application form.
- Evidence of savings to support 3 months mortgage payments whilst refurbishment works undertaken.
- Work must be completed within 3 months of completion and prior to letting out.
- Additional funds released after a satisfactory re-inspection and confirmation of improved end value and rental income.
- Maximum number of tenants: 6
- This cannot be your first buy-to-let property
- You must be an existing large HMO landlord
- For Purchases, an HMO Licence has to be in place or evidence the application has been submitted
- For Remortgages, an HMO Licence to be in place at time of application
- The maximum time remaining on HMO licence is 6 months
- We reserve the right to seek evidence of whether a licence is required at a maximum of every 3 years, and as often as annually
- Not available to first time buyers
- Regulated or Consumer buy to let not accepted
- Limited Companies registered in the UK only
- Minimum energy performance rating of E on an Energy Performance Certificate (EPC)
- Each tenant must have their own Assured Shorthold Tenancy in place
- Minimum income £25,000.
- For portfolio landlords the maximum LTV per property (including fees) is 75%
- Overpayments up to 10% of the advance are allowed.
- This mortgage is not portable.
- This mortgage is available to new mortgage customers only.
If you already have a mortgage with us and are looking to switch your deal, please give us a call on 0800 072 1100 to discuss our range of mortgages available exclusively for existing customers.
- The interest rate charged will not fall below 2.00% (the minimum interest rate) at any point during the mortgage.
- The mortgage must be for a minimum of £80,000 and a maximum of £600,000.
- The minimum term for this product is five years and the maximum term is 40 years.
- All applications are subject to current lending criteria.
- The minimum property value is £100,000.
- All applicants must be at least 21 years of age.
- Please view our mortgage services fees and our mortgage valuation fees.
This does not include all of the information you need to choose a mortgage. For full details please ask us about how you can get an illustration.
Talk to us today
To arrange an appointment with one of our Mortgage Advisers call us free on:0800 072 1100or complete the form below