Financing second homes is often a headache for property investors who want somewhere to holiday or relax rather than let out.
Now, Leeds Building Society has come to the rescue with a specialist second home mortgage.
The mortgage comes with several attractive features to second home owners who face a stack of upfront purchase costs like legal fees and stamp duty.
The lender throws in a repayment holiday, free valuation and fee-free completion to help.
The second home mortgage is a non-standard loan. Most lenders are reluctant to give funds against a property that does not generate an income – especially at the 90% maximum loan-to-value offered by the Leeds.
Sales and marketing director Kim Rebecchi said, “The cost of buying a home is not limited to finding a deposit and being able to pay the mortgage. Stamp duty, solicitor’s fees and searches all have to be budgeted for.
“Depending on the size of the mortgage and the 0% period chosen, borrowers can initially reduce their outgoings by thousands of pounds, allowing them the flexibility to improve their property and manage their cash flow.”
Rates start at 3.79%.
Mortgage Trust has a new two-year fixed rate buy to let mortgage with a free valuation and no fees, at 4.25% with a £150 application fee and loan-to-value up to 75%
Virgin Money has revised rates with a new two-year fixed buy to let loan at 2.99% at 60% loan-to-value, £750 cash back and an eye-watering 2.5% completion fee.
The Teacher’s Building Society has launched a new buy to let mortgage and discounted rates across other loans.
The new buy to let deal is a 75% loan-to-value 2.99% two-year discounted variable rate with a completion fee of £2,333 with a £99 application fee.
Rates and fees are down on other Teacher’s buy to let mortgages.