Leeds Building Society has launched one of the lowest ever buy-to-let mortgage rates undercutting the cheapest residential mortgage deals.
The 1.14% rate has a 4.85% discount from the lender's 5.99% standard variable rate for two-years. The overall cost for comparison is 5.08% APRC representative.
The mortgage has a £2,499 arrangement fee, and applicants will need a 40% deposit to qualify. The maximum loan is £500,000 and it is available on interest-only.
Aaron Strutt, product director at Trinity Financial, says: “It is highly unusual for a buy-to-let rate to be cheaper than the lowest residential mortgages. It shows how hard the lenders are pushing to tempt landlords to purchase new properties and remortgage.”
Early repayment charges apply during the discounted period, and up to 10 per cent capital repayments are allowed each year during the variable rate period without incurring an additional charge.
Representative example: A capital and interest mortgage of £250,000 payable over 25 years, initially on a 1.14% discounted rate for two years and then on a 1% discount off the discounted standard variable rate of 4.99% for 3 years, would require 24 monthly repayments of £958.11 followed by 36 monthly repayments of £1,417.96 and 240 monthly repayments of £1,539.35. The total amount repayable would be £446,338.20 made up of the loan amount, plus interest (£193,485.20) and £2,499 (product fee), £199 (final repayment charge), £35 (completion fee). The overall cost for comparison is 5.08% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
Call Trinity Financial on 020 7016 0790 to secure a buy-to-let mortgage