2 Year Discount Holiday Let Remortgage (up to 75% LTV*) - D237

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

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 Remortgage

Period of loan Rate Payable Additional Information
Months 1-24 (2.50% discount) Variable Rate Currently 2.49% No Product Fee
Month 25 onwards (no discount) Standard Variable Rate Currently 4.99%
The overall cost for comparison is: 4.5% APRC

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

Product Code: D237

Key Features:

Product Fee No Product Fee
Maximum Loan to Value % The maximum loan to value is 75% 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 Mixed Repayment/Interest only mortgages will be considered but the interest only element cannot exceed 50% LTV. This only applies to new borrowers, with existing borrowers being allowed to transfer their existing interest only loan if they move house. Any additional borrowing must be on a repayment basis.
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.
Cashback £250 Cashback
Valuation Fees One Free Standard Valuation (On Properties up to £1 Million in Value)
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 loan amount 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 in years 1 & 2. Following receipt of a lump sum payment, the amount that you owe, and so the amount of interest you pay, is reduced immediately.
Application Fee None

Further Information:

  • Please note that our holiday let mortgages are available to existing home owners who would like to remortgage 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.
  • *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.
  • **LTV is limited to 65% on apartments and maisonettes.
  • 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 £25,000 per annum with a maximum loan size of up to £350,000 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.
  • For loan sizes above £350,000 at least one party must earn atleast £40,000 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).
  • Minimum age 25 (21 considered on referral).
  • Maximum age at end of term - 85 based on the oldest applicant for a joint application.
  • 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 75%.
  • Minimum property value £150,000.
  • Term 5-30 Years.
  • Assured shorthold tenancies are NOT to be created.
  • Occupation will be on the basis of a licence i.e. occupants will have no rights
  • Our Tariff of Mortgage Charges gives details of the charges payable in connection with mortgage applications and additional administration following completion of your loan.

Property is unacceptable if it is:

  • Non-standard construction
  • Has restrictive usage covenants e.g. holiday let covenant
  • Situated on a holiday park
  • A new build property.
  • A shared ownership property

Representative example:

A mortgage of £201,107 payable over 17 years and 8 months initially on a discounted variable rate for 2 years at 2.49% and then on our current variable rate of 4.99% for the remaining 15 years 8 months would require 24 monthly payments of £1,173.48 and 188 monthly payments of £1,401.20.

The total amount payable would be £291,964.12 made up of the loan amount plus interest (£90,482.12), legals fees (estimated £250) and mortgage exit fees (£125).

The overall cost for comparison is 4.5% APRC representative.

Info document Click here to download the further Lending Criteria for this product. 

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.

Most Buy to Let Mortgages are not regulated by the Financial Conduct Authority or the Prudential Regulation Authority.
 
 


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