2 Year Fixed Rate Holiday Let Mortgage (up to 70% LTV*) - F382

This mortgage allows you to purchase a residential property for holiday letting purposes.

The maximum Loan to Value (LTV) is the amount of a mortgage loan expressed as a percentage of the purchase price or valuation, whichever is the lower. At the end of the fixed period interest will revert to our Standard Variable Rate for the remainder of the life of the mortgage.

Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home.

Interest Rates:

For Purchase

Period of loan Rate Payable Additional Information
Months 1-24 2.59% Fixed Rate £999 Product Fee
Month 24 onwards 4.99% Standard Variable Rate
The overall cost for comparison is: 4.6% APRC

Product Code: F382

Key Features:

Product Fee £999 can be added to the loan
Maximum Loan to Value % The maximum loan to value is 70% across Wales and England (including Isle of Wight), subject to the property being located in an area commensurate with holiday letting.
Loan Size £50,000 to £500,000
Repayment Type Interest Only, Repayment or Mixed Interest-Only/Repayment.
Early Repayment Charge During the first 2 years an early repayment charge of 3% of the amount repaid will be incurred. After this period no early repayment charges apply.
Overpayments Regular overpayments are not permitted during the first 2 years from completion. Regular overpayments are amounts collected with, and in addition to, your monthly mortgage payments. You may make capital repayments of up to 5% of the original sum borrowed in each of the first 2 years without an early repayment charge. However, during the first 2 years any additional amount repaid above the 5% permitted will be subject to an Early Repayment Charge of 3% of the amount repaid. Following receipt of a lump sum payment, the amount that you owe, and so the amount of interest you pay, is reduced immediately.


Further Information:

  • Please note that our holiday let mortgages are available to existing home owners who would like to purchase a property which is used for holiday letting and is situated in Wales and England (including Isle of Wight), subject to the property being located in an area commensurate with holiday letting.
  • *For House Purchase, the maximum Loan to Value is the amount of a mortgage loan expressed as a percentage of the purchase price or valuation, whichever is the lower.
  • Rental income must be a least 45% more than the mortgage interest repayments (based on the initial rate payable plus 2% or 5.5%, whichever is greater).
  • Holiday Letting Agent letter to be provided confirming weekly rent in low, medium and high season. Average taken of these three and multiplied by 30 to give a yearly figure.
  • At least one party must earn at least £40,000 per annum and income to be derived from a source other than rent. If the term takes the mortgage beyond retirement, we will not need evidence of pension income.
  • Must be a property owner-occupier.
  • No more than 3 holiday let properties with the Society. Unlimited holiday let/Buy-to-Let with other lenders.
  • Private individuals only (No Limited Company lending).
  • Maximum age at end of term - 85 based on the oldest applicant for a joint application.
  • Maximum age at the beginning of the term – 55 based on the youngest applicant for a joint application
  • Minimum age 25 (21 considered on referral).
  • These terms may be transferred to any new loan up to the amount of this loan, provided it is used for Holiday Let purposes,  completes at the same time as redemption of this loan and you still meet the Society’s lending criteria at that time. If the new loan is for less than this loan or you do not transfer these terms, an early repayment charge calculated at 3% is payable on the difference in the amount of this loan and the amount transferred. All loans must be secured on land in Wales or England. The loan to value must be no greater than 70%.
  • Minimum property value £150,000.
  • Term 5-30 Years.
  • Assured shorthold tenancies are NOT to be created.
Property is unacceptable if it is:

  • Non-standard construction
  • Has restrictive usage covenants e.g. holiday let covenant
  • Situated on a holiday park
  • A shared ownership property
  • Split into more than one unit


Representative example:

A mortgage of £232,892 payable over 18 years and 11 months initially on a fixed rate for 2 years at 2.59% and then on our current variable rate of 4.99% for the remaining 16 years and 11 months would require 24 monthly payments of £1,298.81 and 203 monthly payments of £1,557.97.

The total amount payable would be £349,258.35 made up of the loan amount plus interest (£114,547.35), product fee, (£999), valuation fee (£420), legal costs (estimated £250), funds transfer fee (£25) and mortgage exit fees (£125).

The overall cost for comparison is 4.6% APRC representative.


 
 


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