‘Umbrella’ mortgage for professional buy-to-let landlords launched
The ‘umbrella’ product, available to members of The Buy to Let Business Mortgage Club, is aimed at landlords with ten or more buy-to-let properties.
The Buy to Let Business Mortgage Club managing director Ying Tan said he aimed to bring a product from the commercial space into the mainstream buy-to-let market: “Over the last few years the market has been very much catering to the amateur landlord. There is only a handful of lenders catering to professionals.”
The umbrella mortgage would allow landlords to streamline repayments, he explained: “Rather than having three or four payments going out to lenders you just have one.”
The loan is available to individuals, partnerships, limited liability partnerships and trading and non-trading limited companies.
Rates are negotiable between 2.5% and 4% over three month LIBOR. There is a 0.5% commitment fee, refunded on completion, and a 1.5% arrangement fee, which can be added to the loan.
Borrowers may choose between an interest-only or repayment mortgage – in the former case, the maximum loan-to-value is 60% and in the latter 65%.
The landlord must own a minimum of ten properties, the minimum loan is £500,000 and no single property can be worth less than £75,000.