Expat Holiday Buy to Let 2 Year Discounted Variable Rate – DIB088

A mortgage of £270,000.00 payable over 20 years initially on a variable rate of 5.65% for 2 years and then on our current standard variable rate of 8.29% for the remaining 18 years would require 23 monthly payments of £1,884.49 and 216 monthly payments of £2,277.11; plus one initial interest payment of £1,295.63

The total amount payable would be £538,941.66 made up of the loan amount, plus interest and fee(s) totalling £268,941.66.  This includes Application Fee (£199), Legal Fees (£255), Valuation Fee (£344) Chaps Fee (£25), Completion Fee (£1,499) and Redemption Administration Fee (£125).

The overall cost for comparison is 8.1% 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 125% of the monthly mortgage payment calculated at 8.25% on an interest only basis

Expat applicants must be a UK national and a previous UK owner-occupier, residing in a Financial Action Taskforce (FATF) member country for less than 5 years. Please note residents of Australia and China are ineligible, although member states of the Gulf Corporation Council, and Hong Kong residents are eligible.

Minimum income of £35,000 (or equivalent) applies. Maximum of 1 Expat Buy to Let mortgage per borrower. AUK service address and a UK based sterling bank account are required.

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.

Full details of how to apply for this product are detailed in the accompanying letter. By switching to a new product, you should be confident that your circumstances haven’t changed as we won’t provide any advice and you won’t benefit from the Financial Conduct Authority rules on assessing suitability.

If your circumstances have changed in any way or if you are unsure of your options and would like advice, you will need to contact a mortgage broker who will act on your behalf. A mortgage broker will assess your financial circumstances and will recommend the most suitable product for you from the range of  mortgages available. They will then deal with your product switch directly with us, if you have given them authority to do so.

If you do not have a preferred mortgage broker to act on your behalf, we can pass your details to our trusted partner Mortgage 1st. Email us at producttransfers@mansfieldbs.co.uk  or call us on 01623 676345 if you would like to do this. Like most mortgage brokers, fees for advice may apply and these will be discussed with you in advance before you make a commitment to proceed.

If you choose to do nothing, your interest rate will revert to our Standard Variable Rate (currently 8.29%) and your monthly mortgage repayments will increase in line with the revised rate. There are no Early Repayment Charges (ERCs) to leave our Standard Variable Rate and you are free to move to one of our products or remortgage to another lender without penalty.

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 balance as at 1 January of the year in which the overpayment is made 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 balance on 1 January in the calendar year in which the overpayment is made, 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.