HMO 3.89% fixed for five years

A five year fixed rate mortgage to purchase or remortgage an investment property to rent out up to a maximum of six bedrooms.

  • Affordability calculator Want to know if you can afford this mortgage?

    Gross annual income

    Mortgage details

    This is the maximum amount based on the information you provided. Your mortgage adviser will take you through the application process and will calculate the amount you can afford to borrow based on your income after the deduction of those expenses and commitments. Further restrictions may apply for specialist products.

With years of experience under our belt we can cater for aspiring first time landlord to portfolio investors. Our personal approach to mortgages allows us to assess each case individually on its own merits. This product requires a minimum 30% deposit and our loans range from £50,000 - £1.5 million.

Our flexible approach allows us to cater on a consumer BTL basis, which can include any of the following scenarios:

  • When a family member has occupied or will occupy the property
  • The property was inherited, and the applicant owns no other investment properties
  • A Let to Buy where the applicant owns no other investment properties.
Interest
rate i
SVR (standard variable rate) i Overall cost for comparison i Max %
LTV i
Payment
typei
3.89% 4.9% 4.8% APRC 70% Interest only
  • See example

    Representative example: A mortgage of £190,000 taken out for a period of 19 years on an interest only basis.

    Monthly instalments: £615.92 per month for 59 months, followed by £778.92 per month for 168 months.

    Total amount payable: £359,977.84

    Total amount of credit: £190,000

    The total amount payable includes administration fee £125, valuation fee £580, product fee £1,900, completion fee £75 and closing fee £100.

    The overall cost for comparison is 4.8% representative APRC.

    This example relates to the HMO fixed for five years product, is based on a typical mortgage and assumes that fees are not added to the mortgage. Please ask for a personalised illustration for your own particular requirements.

  • Availability - HMO Purchase & Remortgage up to 70% Loan To Value (LTV). Minimum deposit of 30% required.
  • Flexibility - Overpayments up to 20% of the capital balance as at 1st January allowed in each calendar year without penalty.
  • Portable.

If you repay your mortgage early, or make an overpayment, you may have to pay an early repayment charge.

For full repayment, you will pay 3% of the outstanding balance in years 1, 2, 3 & 4; 2% in year 5, plus a Closing Administration Fee (currently £100).

For overpayments, you will pay 3% on any amount exceeding your 20% limit in year 1, 2, 3 & 4, 2% in year 5.

  • Product Fee 1% of advance (Minimum £999).
  • Administration Fee £125.
  • Valuation Fee (HMO scale).
  • Completion Fee £75.

Lending Criteria and Information

Loan:

Size: Minimum £50,000, Maximum £1,500,000 at 70%.
Term: Minimum 5 years, Maximum 40 years.
Repayment Type: Capital Repayment, Interest Only.

Property:

Minimum Value: £100,000. Must be standard construction.
New build flats may be considered. Must be in England, Wales or mainland Scotland.  

Applicant:

Age: Minimum 21, no maximum, subject to income in retirement.

Income:

Household income must be at least £20,000.

Rental:

The calculation is based on the actual or expected rental. Rent must cover 125% of the ‘stressed mortgage payments’ for basic rate tax payers, or 145% for higher rate tax payers.  The stressed mortgage payment is based on the product rate +2% or 5.5% whichever is higher.

Underwriting:

We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk.

How to apply

Call us

Call our Mortgage team on
01225 475730

Call us

Book a call back

If you would like to book a call with our Mortgage team, please complete the form and we'll call back within one working day.

Book a call back

Email us

Email our mortgage team on mortgages@bibs.co.uk

Email us

Live chat

Use our Live Chat to talk to the
mortgage team.

Live chat

Did you find the information you were
looking for today?

Great, if you need more information
please contact us.