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‘Umbrella’ mortgage for professional buy-to-let landlords launched

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26/07/2013
Buy-to-let landlords with a portfolio of properties can now take out one loan enabling them to streamline repayments.
‘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.

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