Wednesday, May 10, 2017
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Atom bank cuts commercial mortgage rates
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Oaknorth provides £12.2m for two residential schemes
Pepper Home Loans has launched a sub-3% five-year fix buy-to-let mortgage with a generous rental calculation.
The mortgage is fixed for five years at 2.98% and it has a rental calculation using 140% of the pay rate (2.98%). The overall cost for comparison is 4.06% APRC.
There is a 1.75% arrangement fee and landlords will need a 25% deposit to qualify. Early repayment charges apply for the full five years.
Aaron Strutt, director at Trinity Specialist Finance, says: “Even though some of the other lenders are offering lower five-year fixes, many of them will not provide such large loans at that loan-to-value.
“If your property generates £2,500 rental income each month, Pepper could lend up to £720,000. All mortgage applications are manually underwritten without credit scoring and there are free legals fees on all remortgages.”
After the fixed rate the mortgage reverts to Peppers LIBOR rate plus 4% - currently 4.34%. The lender specifically states that landlords must have a clear credit history with no missed payments in the last three years.
Representative example: A mortgage of £500,000 payable over 25 years, initially on fixed rate for 60 months at 2.98% and then on a variable rate of 4.34% for the remaining 20 years, would require 60 monthly repayments of £1,182.93 followed by 240 monthly repayments of £1,333.46. The total amount repayable would be £396,630.20 made up of the loan amount, plus interest (£141,006.20) and fees of £4,375. The overall cost for comparison is 4.06% APRC representative.
To secure a more generous buy-to-let mortgage, call Trinity Specialist Finance on 020 7016 6151.
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