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Tuesday, November 18, 2008

Need a buy-to-let mortgage with a 15% deposit

Need a mortgage with a 15% deposit?

If so you may be interested in this deal. It's a commercial deal so the
rate and the amount loaned are agreed by the lender on a case by case

° Between 6% and 6.5% variable for the life of the loan (Bank of
England base rate of 3% plus 3% to 3.5%)
° Borrow up to 85% of the purchase price or valuation, whichever
is lower
° To calculate the maximum loan amount you could borrow multiply
the monthly rent by 142.22
° 125% interest cover at 6.75%
° Lender's arrangement fee is 2% of the amount borrowed is added
to advance
° No early redemption penalties
° Lender's documentation fee of £495 is added to the loan. £150
needs to be paid up-front and is refunded on completion.

Subject to status, availability and valuation. Broker's fee applies.

This mortgage is commercially underwritten this means the lender will need:
° 6 months bank statements
° Proof of income - P60 and 3 months' payslips if employed, 2
years accounts if self-employed.

With most deals limiting landlords to only 75% this could be attractive to landlords trying to maximise their gearing. For more information try contacting the moneycentre

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