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NEW - INVESTMENT PRODUCTS

We are pleased to be able to offer the following NEW product enhancements to our introducers

10 Year Interest Only Product – for professional and non professional landlords

Residential Investment only ( not commercial )
HMO accepted
Term of the mortgage is 10 years – SEE BELOW
 
             FOR PROFESSIONAL LANDLORDS ONLY

Up to 70% LTV
Lender arrangement fee of 1.75% – deducted or paid separately
Interest rate generally  4.5% above Base ( or Libor, if preferred by applicant )
Rent Stress Test; 130% cover on INTEREST ONLY up to 20 years, at stress test rate of 7.5% interest rate
Early repayment penalties apply; 3% in the first 3 years, then 2% in years 4 and 5, and then 1% thereafter
Up to 10% of the loan can be repaid in any 12 months without E.R.P. s.
Directors’ guarantees required if borrowing in company name
Will consider HMO properties
May consider additional income if rent stress is not 100% achieved
No leisure sector borrowing /No land only loans /No Trusts
Will lend on properties let out on short term commercial leases ( which is far better than all High Street Lenders currently who generally require a minimum of 10 years remaining on a lease – if not longer )
 
A Professional Landlord is defined as having held at least 3 investment properties within the last 2 years ( for non professional landlords a stress test based on capital and interest at 7.5% pa / 130% cover remains ).

         FOR NON PROFESSIONAL LANDLORDS

We can offer essentially the same product but the stress test is worked on 130% cover based on capital and interest at 7.5%.
 
      Light Refurbishment Product

Up to 65% ltv on day 1 ( lower of valuation or purchase price)
A retention on the advance to take the total advance up to 70% of the completed value
Lender arrangement fee 2.5% of the loan amount
A minimum lender interest rate margin of 5% ( with additional loading of 1% during the refubishment phase)
Refurbishment phase is to take no more than 6 months from the date of drawdown of the original advance
Retention released upon satisfactory re- inspection to confirm condition suitable for letting
Property must be habitable on day 1 – this is not a ‘development loan’
Full costings to be approved by valuer and applicants must show they have funds and contingency and the means to service the debt during the refurbishment
Interest only debited on drawn loan balance ( not on retention)  

Generous commissions on both products

Kind regards,

Mike