2 Year Discounted Variable Rate Holiday Buy to Let – DIB087

A mortgage of £146,000 payable over 10 years initially on a variable rate, currently 5.39% for 2 years and then on our current standard variable rate of 8.29% for the remaining 8 years would require 23 monthly payments of £1,586.54 and 96 monthly payments of £1,764.01; plus one initial interest payment of £668.36.

The total amount payable would be £208,858.74 made up of the loan amount, plus interest and fee(s) totalling £62,858.74. This includes Application Fee (£199), Legal Fees (£255), Valuation Fee (£252), Chaps Fee (£25), Completion Fee (£1,499) and Redemption Administration Fee (£125).

The overall cost for comparison is 7.8% APRC representative.

A representative example is designed to help understanding of the typical cost of this mortgage. This is not an illustration and is only provided as an example.

• A holiday letting agent or valuer is required to provide Low, Mid and High Season rental figures for the property. Agent’s letting fees should be deducted, or assumed as being 20% of gross rents if not available or confirmed
• We will take an annual average of the 3 seasons’ income (after agent fees) and use 70% of this figure, to allow for rental voids, when calculating the Interest Rate Coverage Ratio (ICR)
• This figure must be at least 145% of the monthly mortgage payment calculated at 7.39% on an interest only basis

A discounted variable rate mortgage is discounted from our Standard Variable Rate (SVR), and as a result, the initial rate will go up or down when we change our SVR and by the same amount. We choose when to change our SVR depending on a variety of factors and our SVR is not directly linked to the Bank of England Base Rate (BBR). If the interest rate goes up, we will write to borrowers in advance to inform them of the intended changes.

Borrowers can make overpayments between 1 January and 31 December each year during the discounted rate period of up to 10% of the original loan amount without incurring an Early Repayment Charge.

Any lump sum payments or regular overpayments received in a single calendar year, which in total exceed 10% of the original loan amount will incur an Early Repayment Charge on the amount of the excess. The Early Repayment Charge is a percentage fee of your current balance.

Any Early Repayment Charge will be waived if a new consecutive mortgage for at least the amount outstanding at the time of redemption is taken out with us. If a new mortgage for at least the amount outstanding at the time of redemption is taken out with us within 3 months of full repayment then any early repayment charge will be refunded.

The fee charged is normally based on the purchase price of the property at the time of inspection. Where the purchase price is preferential or where the price is not known at the time of inspection, the fee charged will be based on the valuation figure. Unless otherwise stated in the product features, a basic valuation fee is payable by the applicant(s).

You can find out more including the fee scale in our Mortgage Valuation Fees document.

Unless otherwise stated, our mortgage products are available for house purchase or remortgage. All our mortgage products are subject to availability and can be withdrawn at any time.

All mortgage applications are manually underwritten by our experienced underwriters and are subject to a full assessment against our lending criteria.

It is important that you take time to read and understand the mortgage product features detailed above and the information about our Residential or Buy to Let mortgages detailed in the General Information Guides.

For new mortgage enquiries, we accept applications from mortgage brokers and intermediaries only. If you are not a mortgage broker and are a customer looking for a new mortgage, we can pass your enquiry on to our trusted partner Mortgage 1st.

Mortgage 1st* are an independent mortgage broker who provide advice on mortgages from across the mortgage market to get the right deal for you. If you would like to make an enquiry, simply enquire online and they will then contact you to discuss your mortgage needs.

If you are an existing borrower, you can still contact us directly to discuss your mortgage.

*Mansfield Building Society are an introducer to Mortgage 1st for mortgage advice. Mortgage 1st is a trading style of Mortgage First Limited, which is an appointed representative of Stonebridge Mortgage Solutions Ltd, and is authorised and regulated by the Financial Conduct Authority. Mortgage 1st Limited is on the Financial Services Register under firm number 484231.