Buy to Let Mortgage - Libor Term Tracker
In a nutshell:
A Term Tracker mortgage available in Euro, US Dollar, Hong Kong Dollar, Swiss Franc, Japanese Yen and Singapore Dollar which tracks Libor for the lifetime of the mortgage.
Suitable for:
Any one of the following categories wishing to purchase or remortgage a UK residential property for Buy to Let purposes or indeed wishing to release equity in their property for any legitimate purpose:
- UK resident / Non UK domiciled.
- UK resident / Not Ordinarily Resident (NOR) for UK tax purposes.
- Non UK resident (either a UK expatriate or a foreign national residing outside the UK).
- UK resident / UK domicile (in certain circumstances).
Applicants may also be an Offshore Company or Trust.
What is libor?
Libor stands for the London Inter Bank Offered Rate and is the main setter of interest in the London wholesale money market. Unlike bank rate, which is set directly by the Bank of England, Libor rates are set by the demand and supply of money as banks lend to each other to balance their books on a daily basis.
Libor covers lending from overnight up to 12 months and is used to price all kinds of financial instruments such as loans and floating-rate mortgages. Loans in other currencies are also priced relative to Libor.
Key features:
- Minimum loan £500,000 currency equivalent.
- 3, 6 and 12 month Libor Interest Periods available.
- Borrow up to 70% of the professional valuation of the property or of the purchase price, whichever is lower.
- Interest Only Mortgages - add 0.20% to the Interest Rate. In addition, a maximum 65% loan to value applies.
- Offshore Companies and Trusts - add 0.25% to the Arrangement Fee.
- Flats under 5 years old - a maximum 65% loan to value applies (60% If Interest Only).
- Minimum £50,000 personal income requirement (excluding any rental income).
- Option to repay your mortgage early.
- Choice of interest only or repayment options.
- Maximum of 10 properties per applicant(s).
- Rental Income must equate to a minimum 125% of the annual (interest only) costs based on the actual Pay Rate.
- Tenancy - must conform to Assured Shorthold Tenancy (AST). Company Lets will also be considered.
- Multiple tenancies and ex-local authority properties are excluded.
- A link must exist between the applicant's personal circumstances and the currency of the mortgage requested i.e. a proportion of their income and/or assets must originate or be held in the currency of the mortgage requested.
- Subject to affordability.
Buy to Let - Libor (UK Resident)
| Amount | Maximum LTV | Interest Rate | APR | Arrangement Fee |
|---|---|---|---|---|
| £500,000 to 2,000,000 | 50% | Libor + 2.99% | N/A | 1% |
| £500,000 to 2,000,000 | 60% | Libor + 3.19% | N/A | 1% |
| £500,000 to 2,000,000 | 70% | Libor + 3.49% | N/A | 1% |
Buy to Let - Libor (Non UK Resident)
| Amount | Maximum LTV | Interest Rate | APR | Arrangement Fee |
|---|---|---|---|---|
| £500,000 to 2,000,000 | 50% | LIBOR + 2.69% | N/A | 1% |
| £500,000 to 2,000,000 | 60% | LIBOR + 2.89% | N/A | 1% |
| £500,000 to 2,000,000 | 70% | LIBOR + 3.19% | N/A | 1% |
Your home may be repossessed if you do not keep up repayments on your mortgage. Changes in the exchange rate may increase the Sterling equivalent of your debt.
An Early Repayment Charge equivalent to 3% during Year 1, 2% during Year 2 and 1% during Year 3 of the outstanding balance will apply if the mortgage is repaid within the first 3 years in addition to breakage costs** +£250 Administration Fee. Thereafter, any breakage costs**+ £250 administration Fee will apply.
**Breakage Costs - any loss, cost or expense incurred by the Bank in connection with any prepayment prior to the last business day of the applicable Interest Period).
Please contact us if the Mortgage amount exceeds £2,000,000 as preferential pricing may be available.
Rates and fees quoted are correct at 23rd June 2009. Terms and conditions apply. The actual rate available will depend upon your circumstances. Please ask for a personalised illustration.
Call +44 (0)1624 644080 for more information.
