Buy-to-let mortgage update from Resident Broker

Buy to Let Product Update

Quick update on Bank of China: Access to their buy to let mortgages is only available via a select panel of packagers, but their criteria are confusing, at best. A little tip for you - one packager charges almost £150 less on their standard valuations than the others, so let us know if you’re considering this lender.

75% Loan to Value mortgages remain thin on the ground, and the two main rates are still with our old friends at BM.

1. BM Solutions　
Interest rate: 4.7%
LTV: 75%
Product Detail: 2 year tracker at 125% rental calculation (base rate + 4.2%)
Arrangement Fee: 3%
Early Redemption Penalties: 3% in first 2 years.
Our thoughts: The lowest rental cover for 75% loan to value mortgages therefore good for low rental properties, and BM are still the most efficient and quickest. Remember, you can only have a total of 9 properties within the Lloyds Group.
Please note: Not for the faint hearted – should Bank of England base rate significantly increase, then so will your rate.

2. BM Solutions　
Interest rate: 6.00%
LTV: 75%
Rental: 125% at pay rate
Product Detail: 2 year fixed
Arrangement Fee: 2.5%
Early Redemption Penalties: 3% until 01/12/2011
Our thoughts: Alternative to the tracker above.

3. Newbury BS　
Only available in the following postcode areas: RG, OX, HP, SN, SL, SP, SO, GU.
Interest rate: 5.25% variable rate
LTV: 75%
FREE Valuation
Rental: 125% at pay rate
Arrangement Fee: £500
Early Redemption Penalties: 2% in first 3 years
Our thoughts: If you happen to be buying in the relevant postcodes then this is a good option.

Free property management software, Free tenancy agreements