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Essential works - Kirkby in Ashfield (from 28 June)

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

A mortgage exclusively available for UK owner-occupier nationals currently residing in a Financial Action Taskforce (FATF) member country wanting to purchase or remortgage a Buy to Let holiday property in England or Wales.

Key Details

Term 2 years
Initial Rate1 6.25% variable
Overall Cost For Comparison2 8.9% APRC
MAX LTV3 75%
Early Repayment Charge 2% in Year 1, 1% in Year 2
Product Fees £199 application fee, £1,499 completion fee

Product Fees

  • The £199 Application Fee is non-refundable and payable at the point of application
  • The Completion Fee can be paid before completion or added to the loan. If the Completion Fee is added to the loan amount, interest will be charged on the amount of the fee and this will be reflected in the monthly repayment over the term of the mortgage

A £1,000 Completion Fee added to the loan amount would increase in value over the term of the mortgage and an illustrative example is provided below based on a static rate over a 10, 15 or 25 year term.


Fee Amount
Value of the fee with interest at 10 years
Value of the fee with interest at 15 years
Value of the fee with interest at 25 years
£1,000 8.89% £1,889.00 £2,333.50 £3,222.50

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Representative Example

A mortgage of £100,000.00 payable over 25 years initially on a variable rate, currently 6.25% for 2 years and then on our current standard variable rate of 8.89% for the remaining 23 years would require 23 monthly payments of £660.59 and 276 monthly payments of £822.88; plus one initial interest payment of £512.30.

The total amount payable would be £245,080.75 made up of the loan amount, plus interest and fee(s) totalling £145,080.75. This includes Application Fee (£199), Valuation Fee (£157), Legal Fees (£255), Chaps Fee (£25), Completion Fee (£1,499) and Redemption Administration Fee (£125).

The overall cost for comparison is 8.9% 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.

Mortgage Product Features

  • The Initial Rate is discounted by 2.64% below our Standard Variable Rate (SVR) for the first two years, giving a current rate payable of 6.25% variable. At the end of the two years the Society’s standard variable rate (SVR) will apply
  • Minimum loan size £100,000
  • Maximum loan size £1,000,000 for any single property (up to 70% LTV), £750,000 (between 70% and 75% LTV)
  • Minimum earned income of £35,000 required
  • A repayment of capital up to a maximum of 10% of the original advance will be allowed each calendar year during the product term without incurring an Early Repayment Charge.
  • Completion fee can be paid before completion or added to the loan. If the completion fee is added to the loan amount, it will become interest bearing and will be reflected in the monthly repayment over the term of the mortgage
  • An Early Repayment Charge of 2% will apply if the mortgage is redeemed at any time during the first year, followed by 1% in the second year. The Early Repayment Charge is a percentage of the balance at the point of redemption
  • Valuation fees are payable by the customer
  • Legal fees are payable by the customer
  • This product is not regulated by the Financial Conduct Authority (FCA)
  • Not available for Consumer Buy to Let or FCA Regulated Buy to Let
  • A minimum interest rate of 3.0% will apply during the term of the discounted period

This product is subject to change or withdrawal without notice

Holiday Let Rental Income Requirements

  • 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 Applicant Criteria

Expat applicants must be a UK national and a previous UK owner-occupier, residing in a Financial Action Taskforce (FATF) member country. 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. A UK service address and a UK based sterling bank account are required.

Will the interest rate change?

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.

Will I be charged if I repay my mortgage?

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.

How much are valuation fees?

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.

Important Information

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.

How to Apply

All of the mortgages shown are available direct from us via our qualified sales team, please call on the number above, request a call back, or submit a detailed contact request to find out more.

To get an indication of whether this mortgage is right for you, you can use our repayment calculator to see what the potential monthly repayments might be.

Your home may be repossessed if you do not keep up repayments on your mortgage


1 The Initial Rate is the rate available during the initial term of the mortgage. Once the initial rate term has expired, the mortgage will either revert to our Standard Variable Rate (SVR), or a follow-on rate that is a discount off our SVR.

Our SVR is set by us and is currently 8.89%, as a variable rate it may go up or down. Our follow-on rate is 1.74% below our SVR and is currently 7.15% variable. Our follow-on rate will go up or down with changes to our SVR.

2. The Overall Cost for Comparison is given as the Annual Percentage Rate of Charge (APRC) and includes all charges incurred relating to the mortgage. The APRC is intended to help you as a borrower compare the interest rates on different products.

3. Like all other mortgage lenders, we will allow you to borrow against a proportion of the overall property value. This is known as Loan to Value (LTV) and is expressed as a percentage. For example, if you want to purchase a property at £100,000 and you would like to borrow £85,000, then you will need a mortgage available at 85% Loan to Value (LTV). The available LTV can vary depending upon the type of mortgage.

Shared Ownership mortgages will offer two percentages under LTV – the proportion of the property value and the proportion of the share being purchased.

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