# 5 Year Limited Company Buy to Let Fixed Rate Mortgage

RATES CORRECT AS AT 12 April 2024

Initial rate
6.79%
Fixed up to and inc. 31/07/2029

Then changing to the Society's BTL Variable Rate thereafter, (currently)
8.54%
For the remaining term of the mortgage

The overall cost for comparison is
8.2%
APRC

Maximum loan to value
80%

FEES AND CHARGES WILL APPLY, SOME OF WHICH ARE NON-REFUNDABLE, SEE BELOW.

Representative Example

A mortgage of £150,000.00 payable over 25 years initially on a fixed rate for 5 years at 6.79% and then on our current Buy to Let Variable Rate of 8.54% (variable) for the remaining 20 years would require 60 monthly payments of £848.75 and 240 monthly payments of £1067.5.

The total amount payable would be £457,390.00 made up of the loan amount plus interest of £307,125.00 and application fee £0, product fee £0, valuation fee £225, funds transfer fee £35.

The overall cost for comparison is 8.2% APRC representative.

This representative example assumes a mortgage completion date on the 1st day of a calendar month.

The above representative example is for illustration purposes only and may vary depending on your personal circumstances.

• Interest calculated daily.
• Maximum loan £500,000.
• 10% capital repayments are allowed each year during the fixed rate period without incurring an Early Repayment Charge.
• Tapered Early Repayment Charges apply up to and including 31 July 2029.

#### Fees

Application Fee (payable on application - non-refundable)

£0

Product Fee (payable on application - this is refundable should the mortgage not complete)

£0

Mortgage Exit Fee

£199

#### How to calculate the income coverage ratio (ICR)

The minimum ICR for Limited Company Buy to Let is 125%

The mortgage interest calculation assumes a stressed rate. For stress rates, please see the All Product (Excel) or view the 'assessment of rental income' on the criteria guide.

#### Calculate the mortgage cost

Multiply the loan amount by the appropriate stress rate (the calculation below uses an example stress rate of 5.5%)

• E.g. £150,000 loan x 5.5% stress = £8,250.

#### Calculate annual rental income

Multiply the monthly rental income by 12.

• E.g. rent £900 per month x 12 = £10,800.

#### Use calculations to work out the ICR

Divide the rental income by the mortgage cost then multiply by 100.

• E.g. £10,800/£8,250 x 100 = 131% ICR.