N&P expands buy-to-let service

Amanda Jarvis

October 25, 2004

Up to now, N&P’s scheme has only been available to a small number of mortgage brokers as an exclusive product.

Stephen Penlington, N&P’s general manager for customer service, said: “We adopted a very conservative approach to launching a Buy To Let mortgage. It’s been extensively piloted with a small number of brokers, who have helped us to develop a tailored service for buy to let landlords. As a building society we are quite naturally cautious about lending in areas that might be thought more risky but we are also a very innovative society and are keen to develop new products and services as they are needed by our customers. Now we know the market, and that the product is just right, we are ready to launch it to a wider audience.”


* Mortgage interest rate – 0.85% or 0.95% over Bank Base Rate Tracker — guaranteed for life of the loan
* No early repayment charges.
* Re-mortgage and Purchase (second time Buy to Let purchase only and 12 months experience in this market).
* Minimum advance £50k — Maximum £1m per property. Aggregate £1m per borrower
* Minimum property value £75k (£100k for ex local authority properties)
* Maximum 10 properties (subject to max £1m borrowing)
* Up to 70% LTV (Bank Base Rate + 0.85%)
* Up to 75% LTV (Bank Base Rate + 0.95%)
* Rental cover & repayment – 130% rental cover on Interest-only payments, calculated at a notional rate of 5.85% p.a.
* Capital and Interest or Interest-only accepted
* Minimum term 5 years — Maximum term 25 years (subject to not exceeding the age of 70 after mortgage term)
* Arrangement fee – 0.50% of loan added to advance
* The property to be mortgaged must be in England or Wales, freehold or, if leasehold there must be 50 years left on the lease at the end of the mortgage term
* 6-12 month assured shorthold tenancy
* 1-3 year company lets acceptable. Longer lets acceptable subject to no more that 3 years remaining on the letting agreement at the time of application
* Blocks of flats accepted provided the landlord owns the freehold. Maximum 4 units in a block. Maximum exposure of 25%. Maximum 4 storeys on any one development of ex-local authority developments. For purpose built private developments, no restriction on number of storeys
* Exclusions – no freehold flats/maisonettes, prefabs, MOD, Housing Association houses or flats

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