Please Note: This Article is 4 years old. This increases the likelihood that some or all of it's content is now outdated.

The top-up buy to let mortgage is a new loan for landlords with an innovative repayment plan.

Castle Trust, an independent lender, has introduced the mortgage to sit alongside a standard buy to let loan.

Instead of paying interest, the loan is repaid at the end of the term and a slice of any growth in the property value is added.

Castle Trust will lend up to 20% of the investment property value over a maximum 10 year term, but the top-up is only allowed to take maximum borrowing including any first charge mortgage up to 85% loan to value.

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Lending is further restricted between a minimum of £10,000 and a maximum of £400,000.

Arrangement fees of around £500 are also charged.

As an example, a landlord borrows £25,000 against a home worth £140,000 over 10 years. The final repayment is £35,714.

Another independent lender with a new buy to let mortgage deal is InterBay Commercial.

The firm is offering up to 85% loan to value mortgages on a rent stress test of 110%, compared to 125% applied by most mainstream lenders.

The current rate is a 6.1% LIBOR tracker at LIBOR plus 5.35%.

The maximum loan is £1 million.

The lender charges a 2% arrangement fee – and 3% if the loan is less than £75,000.

Besides buy to lets, the lender will advance funds on houses in multiple occupation (HMOs) and new flats at a maximum LTV of 75%.

The deal is not open to first time landlords.

Santander is paying a £250 cashback and a free valuation to landlords remortgaging buy to lets.

Managing director Brad Fordham said: “The buy to let market remains a key focus for us as we move into 2014 and this latest improvement, offering a free valuation and £250 cashback to non-professional landlords when remortgaging, demonstrates our continued commitment to this sector.”

All the above buy to let mortgages are only available through brokers.

Please Note: This Article is 4 years old. This increases the likelihood that some or all of it's content is now outdated.

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