5 Year Discount Buy-to-Let Rate Switch Mortgage for Existing Borrowers Only (up to 75% LTV*) - D243

This mortgage package offers lower monthly payments during the first 5 years. At the end of the discount period interest will revert to our Standard Variable Rate for the remainder of the life of the mortgage.

If you fail to keep up with payments on your mortgage a 'receiver of rent' may be appointed and/or your rental property may be repossessed.

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 Rate Switch

Period of loan Rate Payable Additional Information
Months 1-60 (2.10% discount) Variable Rate Currently 2.89% No Product Fee
Month 61 onwards (no discount) Standard Variable Rate Currently 4.99%
The overall cost for comparison is: 4.1% APRC

Interest rates are variable. All discounts are off our standard variable rate currently 4.99%.  

Product Code: D243

Key Features:

Maximum Loan to Value % The maximum loan to value is 75%*
Loan Size £30,000 to £350,000 for any single property
Repayment Type Interest Only, Repayment or Mixed Interest-Only/Repayment.
Early Repayment Charge During the first 5 years any additional amount repaid above the 5% permitted will be subject to an Early Repayment Charge of 5% of the amount repaid within the first year, then 4% for the second year, 3% for the third year, 2% for the fourth year and 0% in the final year.
Overpayments Regular overpayments are not permitted during the first 4 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 amount outstanding at the time of the rate switch in each of the first 4 years without an early repayment charge. However, during the first 4 years any additional amount repaid above the 5% permitted will be subject to an Early Repayment Charge of 5% of the amount repaid in year 1, 4% of the amount repaid in year 2, 3% of the amount repaid in year 3, 2% of the amount repaid in year 4 & 0% of the amount repaid in year 5. 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:

  • *For Remortgage the maximum Loan to Value is the amount of a mortgage loan expressed as a percentage of the value of the property against which the loan will be secured. Maximum Loan to value for new build flats/apartments less than 3 years old is 65%. No exceptions allowed.
  • **As this is a ‘fees assisted’ remortgage we will pay the law firm’s basic professional fees in connection with the remortgage.  There will be additional costs that you will need to pay, e.g. telegraphic transfer fee.  Where any non-standard work is required to complete the conveyance these costs must also be met by you, examples of chargeable fee include change of name, transfer of equity, deed of postponement, merger of freehold/leasehold, remedy of title defect, satisfying special conditions, etc.
  • Please note that our current Buy-to-Let products are ONLY available in our lending area of England and Wales.
  • This mortgage is available to people seeking to buy a property in order to let it.
  • 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). This stress test does not apply to CBTL as rent is not considered as income.
  • These terms may be transferred to any new loan up to the amount of this loan, provided it is used for Buy-to-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 within our lending area of England and Wales.
  • For multiple property applications there is a maximum loan size of £750,000. Portfolios above £750,000 will be considered on an individual basis.
  • For single named applications, the applicant’s income from either employment or self employment must be at least £25,000 per year. In the case of a joint application, the income of the main applicant (i.e. the highest earner) must be at least £25,000 per year. The applicant (or one of the applicants in the case of a joint application) must be an existing home owner at the time of the application. 
  • Our Tariff of Mortgage Charges gives details of the charges payable in connection with mortgage applications and additional administration following completion of your loan.

Applications will not be considered in respect of:

  • Flats above shops or other commercial properties
  • Right to Buy’ council homes
  • Properties sold at auctions
  • Multiple or short-term lets – for instance to students or holiday lets
  • Limited company borrowers
  • Properties let to family members

Representative example:

 A mortgage of £89,979 payable over 19 years and 9 months initially on a discount rate for 5 years at 2.89% and then on our current variable rate of 4.99% for the remaining 14 years and 9 months would require 60 monthly payments of £498.70 and 177 monthly payments of £573.88.

 The total amount payable would be £131,623.76 made up of the loan amount plus interest (£41,519.76) and mortgage exit fees (£125).

The overall cost for comparison is 4.1% APRC representative.

Links to further important information and details of how to apply can be found on the top right-hand-side of this page.

Monmouthshire House, John Frost Square, Newport, NP20 1PX
Tel: 01633 844444
Fax: 01633 844445

Monmouthshire Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register Number: 206052

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