Principality for Intermediaries has improved its buy-to-let and holiday let criteria to attract more property investors.
The lender has some impressively priced two and five-year fixed rates and charges the same rate for its buy-to-let and holiday let mortgages. Unlike some other building societies, it even allows owners to reside in the property for up to two months of the year.
Principality has increased its maximum age to 85 and increased its loan sizes. The maximum loan size has risen to £750,000 if you have a 40% deposit and £500,000 with a 25% deposit.
The building society will also accept up to two holiday lets in a portfolio whether in sole or joint names. Applicants must also have resided in their own home for 12 months.
You will need a minimum income of £20,000 to qualify for mortgages up to £250,000. This rises to £30,000 if it’s a joint application. For loan sizes between £250,001 and £750,000 the minimum income rises to £80,000 either solely or jointly.
The rental income will be used to calculate the loan amount and an average of the projected low, mid and high season weekly rental yields will be used, they are typically multiplied by an assumed occupancy level of 30 weeks and divided by 12 months.
For pound for pound remortgages where the property was purchased before January 2017 a lower stress rate of 125% at 5.5% can be applied.
Aaron Strutt, product director at Trinity Financial, says: “More of the big buy-to-let lenders are offering older borrower buy-to-let mortgages but they are not providing them with the money to purchase a holiday let.
“Principality says more people are enjoying staycations and our brokers regularly speak to landlords purchasing or remortgaging holiday lets.”
Call Trinity Financial on 020 7016 0790 to secure a buy-to-let or holiday let mortgage