Santander undercuts Virgin by launching five-year fix buy-to-let mortgage at 1.79%
Santander for Intermediaries has launched a market-leading five-year fix buy-to-let mortgage.
The 1.79% rate has a £1,499 arrangement fee and the maximum loan size is £750,000. Applicants will require a 40% deposit to qualify and have a minimum income of £25,000.
After the fixed-rate period, the mortgage reverts to the lenders 4% standard variable rate and the APRC is 3.2%.
Aaron Strutt, product director at Trinity Financial, says: “The gap between the most competitively priced residential and buy-to-let mortgages seems to be getting smaller every few days. We are updating our best buy tables more than ever.”
How much will Santander lend me?
The maximum loan size is calculated in different ways depending on the amount of tax you pay and the length of the fixed-rate you take.
For lower rate taxpayers purchasing or remortgaging a property, borrowing extra cash, and taking the 1.79% five-year fix, the rental calculation is 130% at 4%. This means the maximum loan size is £461,538 with £2,000 rental income each month. Using the same rent the mortgage reduces to £413,793 for higher rate taxpayers.
For higher tax rate payers remortgaging on to the five-year fix without capital raising, the calculation is 130% at 4%, so using £2,000 rent the maximum loan size is £413,793. For lower rate taxpayers the loan increases to £461,793. Click here to use our buy-to-let rent calculator.
What is the acceptance criteria?
Santander requires at least one applicant to own a residential property which they live in and allows remortgaging with capital raising for many reasons including debt consolidation.
Landlords can have a maximum of three properties with Santander and a total of ten properties in their buy-to-let portfolio.
Call Trinity Financial on 020 7016 0790 to secure a buy-to-let mortgage
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