What are Buy to Let mortgages?
We have temporarily restricted our lending criteria, for the latest updates and essential information during the COVID-19 pandemic read our FAQs.
Important information: your application and the stamp duty holiday
Ahead of the extended stamp duty holiday deadline on 30 June please be aware it is extremely unlikely any new mortgage enquiries will complete in time for you to be eligible. It is important you are prepared to pay for the stamp duty due, your solicitor will be able to provide full details including the amount.
For general information about stamp duty and the rates which will apply from 1 July please click here to visit gov.uk.
A Buy to Let mortgage is used when a property is to be bought and let out to tenants. The mortgage holder becomes a landlord and collects rent from the tenant. We want to support people who are entering the buy to let market for the first time and those landlords who have small portfolios of up to three properties. We don't lend to larger, commercial investors or those who hold their properties in a company or business.
It is worth bearing in mind that the regulation and legislation regarding Buy to Let property can change at any time, so anyone considering becoming a buy to let landlord should ensure they do their research first.
Buy To Let 2.99% 2 Year Discount Rate 80% LTV
- VARIABLE RATE currently 5.24% with a discount of 2.25% until 2 years from completion date then changing to Ipswich Standard Variable Rate (currently 5.24%)
- 5.0% APRC
- For purchase and remortgage up to 80% LTV
24078, 24079 (t/s 24080, 24081)
|Completion Fee||Application Fee (Payable with application and non-refundable)||Valuation Fee (Payable with application)||Higher Lending Charge||CHAPS (Fee for transfer of funds to solicitor)||Maximum Loan Amount|
|£950||£199||Purchase: based on property valuation. Remortgage: FREE||-||£35||£500k|
No charge for overpayments of up to 50% of original loan amount
Early repayment charge period ends 2 years from date of completion
Overpayment of 50% or above - Early repayment charge is 1% of the overpayment
Redemption - Early repayment charge is 1% of the original loan amount
For remortgage only: fee assisted legals
DISCOUNT EXAMPLE: A mortgage of £305,000.00 payable over 25 years initially on our Standard Variable Rate currently at 5.24% with a discount of 2.25% for 24 months, giving a current rate payable of 2.99%, then on our Standard Variable Rate for the remainder of the mortgage term would require 24 monthly payments of £1,449.42, followed by 276 monthly payments of £1,803.94. The total amount payable would be £533,237.52 made up of the loan amount plus interest (£226,688.52), an application fee of £199, a completion fee of £950, a valuation fee of £270, a mortgage funds release fee of £35 and a mortgage discharge fee of £95. The overall cost for comparison is 5.0% APRC representative.
Buy to Let lending criteria:
- Maximum term of 30 years
- We only allow borrowers to have three properties with us, including the one being applied for, and no more than three properties within the total portfolio.
- There must be minimum 145% rental cover against the monthly mortgage payment stressed at a rate of interest of either the Product Rate +2% or a minimum rate of 5.5%.
- Total loan to individual/joint borrowers with Ipswich Building Society not to exceed £500,000
- Minimum loan for Buy to Let is £75,000
- No new build flats, studio flats, ex-local authority flats/maisonettes, flats above 5 storeys or flats above commercial property
- Properties must be let on an approved Assured Shorthold Tenancy
- Properties must not be houses in multiple occupation (HMOs) which require licensing Letting must be on an unfurnished basis
- The let will be to an individual (includes couples and families) but not to a company or business
- The buildings insurance policy must be in joint names with the Society and provide a minimum of £1,000,000 public liability cover
- Multi-lets and student lets are not acceptable.
- All properties must hold a valid Energy Performance Certificate (EPC) and meet a minimum Energy rating of E. The EPC is to be provided to the Society upon application. Should the property be exempt from the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, evidence of exemption is required.
- Currently or have previously owned their own home
- Be a UK resident
- Not be in arrears with any mortgage they currently have
- Be in receipt of income from employment/self employment, pension or investment
- Have a minimum annual income of £25,000. In the case of joint applicants, one applicant must have the minimum required figure
For additional information on our mortgage packages and lending criteria, click here.