This is a variable rate mortgage product which means monthly payments can go up or down during the term of the mortgage. This is different to a fixed rate product. The rate of interest is linked to the Society’s Standard Variable Rate (SVR) for mortgages. For the term of the mortgage, the interest rate charged will be 1.35% below the Society’s SVR – this is the discount rate.
The lowest interest rate you might pay during this period will be 4.00% which is called the “floored” rate. This means that if the Society’s SVR is below 5.35% at any time during the period of the product, you will not benefit from the full rate of discount of 1.35%.
This product is available on:
-
A Capital & Interest repayment basis. This means your monthly repayments will contribute to paying back the initial loan as well as the monthly interest on the remaining balance. Over time, this will mean the amount owed will reduce and the interest will also reduce.
-
An Interest-Only repayment basis. This means that your monthly repayments will only pay back the interest on your initial loan amount. The capital balance will not reduce. You will need to agree with us up front, a suitable method of repaying the initial loan at the end of the mortgage term.
This product is available for properties in England and Wales.
There is a £1,499 fee payable for setting up this mortgage.
This product is available for loans of at least £150,000 and up to £1,000,000.
This loan will be assessed using projected rental income and personal income where required.
The product requires the borrower to have no more than 8 properties in their existing portfolio.
This product is available for properties with multiple occupants (HMO).