5 Year Buy to Let Fixed Rate Mortgage

IF YOU FAIL TO KEEP UP WITH PAYMENTS ON YOUR MORTGAGE A 'RECEIVER OF RENT' MAY BE APPOINTED AND/OR YOUR RENTAL PROPERTY MAY BE REPOSSESSED. MOST BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FCA.

    5 Year Buy to Let Fixed Rate Mortgage (60% LTV) Standard Fee For Purchase and Remortgage

    Our 5 Year Buy to Let Fixed Rate Mortgage is available up to 60% LTV. This mortgage is available to customers purchasing a property or remortgaging an existing property.

    With a fixed rate mortgage, you'll be protected from interest rate increases during the fixed term, but won’t benefit from a fall in interest rates.

    The minimum property value allowed on this mortgage is £50,000, the maximum loan size permitted is £1,000,000 (see Important Notes).

    The interest rates quoted include a 0.25% Direct Debit discount.

    Please be aware our mortgage products can be withdrawn without notice.

    Initial interest Rate 1.98% Fixed until 31/01/2025
    Then changing to Not Applicable
    For the remainder of the term of the mortgage, changing to our BMVR currently 5.19% variable
    The overall cost for comparison is 4.2% APRC
    Early repayment charge [2] 5% until 31 January 2021,
    then
    5% until 31 January 2022,
    then
    4% until 31 January 2023,
    then
    3% until 31 January 2024,
    then
    2% until 31 January 2025
    Overpayments allowed (without an early repayment charge) [3] Yes, up to 10% of original loan each year until 31/01/2025
    Application fee [4] £0
    Completion fee [4] £995
    Notes This product may be portable. No charge for mortgage valuation. Free standard legal fees for remortgages (except for additional borrowing applications).
    The APRC is calculated based on the following: An interest only mortgage of £165,000 payable over 19 years 8 months initially on a fixed rate until 31/01/2025 at 1.98% and then on our variable BMVR rate currently 5.19% for the remaining term would require 60 monthly payments of £273.90 and 176 monthly payments of £717.94. The total amount payable would be £308,724.99 made up of the loan amount plus interest, Completion fee of £995, CHAPS fee of £6. The interest rates quoted include a 0.25% Direct Debit discount.
    1. The maximum loan size available may vary subject to other lending criteria (as well as affordability), which will be assessed during your application. Further information is available from our mortgage team, you can call them on 0345 850 1755. For Buy to Let, we do not currently lend to applicants who have not had a mortgage before.
    2. Where no Early Repayment Charge (ERC) applies or the ERC period has expired, unlimited overpayments can be made.
    3. Where applicable, the 10% overpayment allowance is per annum and cannot be rolled over. For full details please see your Mortgage Illustration/offer.
    4. Any fees payable at application are non-refundable.
    5. For Buy to Let mortgages, rental income is tested for affordability purposes on 145% or 125% (depending upon your income tax banding and number of properties owned) of the mortgage interest payment at an interest rate of 5.5% pa.
    6. Please note, where separate interest rates apply for different Loan to Values (LTVs), a change in the property valuation or loan required may mean you are ineligible for the rate you originally applied for. In this instance you will be advised of the change and asked if you still wish to proceed with your application.
    7. For mortgages that include free standard legal fees, there may be some additional legal costs payable where the remortgage is above £1 million. For further information please visit our Remortgage Conveyancing Service page.
    8. We won’t charge you for valuing your property for mortgage purposes where the property is worth less than £1.5 million. This is for mortgage purposes only and is limited to one application per applicant(s). Should you require a Homebuyers Report or a Building Survey you will need to arrange and pay for this separately. For further information please visit our Valuing Your Property page.
    9. The product shown is available from Skipton through our Skipton Direct team. There may be other products available through intermediaries.
    10. Monthly payments must be paid in advance by Direct Debit on the 1st of each month. The interest rates quoted include a 0.25% Direct Debit discount. If the Direct Debit is cancelled, the discount will be removed.
    11. All mortgages are subject to lending criteria, valuation and underwriter approval. You must be 18 or over to apply for a mortgage.
    12. A floor applies to all discounted and tracker products. If a floor is not shown for a particular product, the floor is 0% i.e. no pay rate will ever be less than 0%.
    13. Certain other fees may apply after the mortgage is taken out depending upon your circumstances. See our Tariff of Mortgage Charges

    APRC - Annual Percentage Rate of Charge

    An indicative guide to help you compare the cost of different mortgage deals, taking account of interest rates payable (both during the initial product period and after) and fees.

    BoEBR - Bank of England Base Rate

    The interest rate at which the Bank of England will lend to the UK banking sector. Set by the Bank’s Monetary Policy Committee (MPC). Also sometimes referred to as the Bank Base Rate (BBR).

    DIP - Decision in Principle

    An assessment of key information from prospective borrowers to provide an indication as to whether the Society could accommodate their mortgage needs.

    MIL - Mortgage Illustration

    A document which must be provided by all mortgage lenders to prospective customers before a mortgage application is submitted. This includes details of rate payments, fees, charges and features.

    LTV - Loan-to-Value

    The amount of a mortgage loan expressed as a percentage of the value of the property against which the loan will be secured.

    BMVR - Buy to Let Mortgage Variable Rate

    BMVR was introduced on 14 November 2012. This is the variable rate we normally apply after one of our product incentive deals ends. It is a different interest rate to the Society’s Buy to Let Standard Variable Rate (BSVR), although both are set by the Society. These two interest rates may change by different amounts and at different times. The BMVR does not have any ceiling.

    Please see our Mortgages jargon buster for further assistance with mortgage vocabulary.

    More Details

    Benefits of a Skipton Mortgage

    When you take out a mortgage, you might appreciate some support on your journey. For this reason, we provide the following benefits.

    • Daily interest - by calculating the interest you pay on a daily basis, we may be able help you save thousands of pounds over the life of your mortgage.
    • Overpayments up to 10% per year without charge even on products that come with an Early Repayment Charge (ERC) – this option could allow you to pay your mortgage off earlier than planned, potentially saving you thousands of pounds in interest.
    • Payment holidays - if you've made overpayments and are eligible, we offer payment holidays, giving you a break from mortgage payments for up to three consecutive months.
    • Mix and match - if you'd like a combination of products, your mortgage adviser may be able to recommend a combination of products to suit your personal requirements. In such cases, the highest product fee of those chosen will apply.
    • We won’t charge you for valuing your property for mortgage purposes where the property is worth less than £1.5 million.
    • For Buy to Let mortgages, rental income is tested for affordability purposes on 145% or 125% (depending upon your circumstances) of the mortgage interest payment at an interest rate of 5.5% pa.
    • Free standard legal costs for some products if you're remortgaging.
    • Cashback following completion for some products.
    • Portability - Your mortgage product may be portable. This means that subject to lending criteria, you may be able to transfer the mortgage balance to a new property with Skipton without paying an ERC (unless you are reducing your balance). Your original mortgage terms will remain.
    • Personal Adviser - you will receive your own dedicated mortgage adviser to offer help, information and advice. Buy-to-let applicants will receive all the help and information they need to make a decision about their mortgage.
    • Protection - we offer both buildings and contents insurance to protect your home and its contents through Legal and General. Buildings insurance can only be put in place for properties which are complete. For new builds, you may need to have 'property in the course of construction' insurance in place from exchange of contracts. Your conveyancer will advise you if this is the case.
    • Additional borrowing – if you want to increase your mortgage in the future, we offer the option of additional borrowing, subject to affordability, Loan to Value and other lending criteria.
    Apply

    Start your application

    You will need a Decision in Principle (DIP)

    It only takes 10 minutes

    Takes under 10 minutes

    Provide us with your details and we'll quickly let you know how much you could potentially borrow.

    It lasts for 30 days

    It lasts for 30 days

    You'll have 30 days to submit a full mortgage application without having to repeat the DIP.

    It doesn't affect your credit rating

    It doesn't affect your credit rating

    We will carry out a 'soft' credit check which won't affect your credit score

    What you'll need to know:


    Your income:

    • Salary
    • Bonuses
    • Overtime
    • Benefits
    • If you’re self-employed - last 2 years of accounts or Accountant's Certificate and net profit
    • For limited companies - amount of dividends and remuneration
    • If you’re a contractor please quote your annual salary as your daily rate x 5 x 48 weeks as employed income, rather than self-employed income.

    Your outgoings:

    • Loans
    • Credit Cards
    • Existing mortgage payments
    • Spending

    How to get a DIP online

    To get started you'll need to check your affordability using our affordability calculator and then request a Decision in Principle (DIP). This is done in two easy stages:

    1. The affordability calculator works out how much you might be able to afford to pay back on your mortgage based on your income and outgoings.

      2. If you've already got your affordability calculation, follow the instructions within your email. You can access it for 30 days before having to start again.

    2. We use the information you supplied for the affordability calculator and ask for some additional information to complete your DIP.

    If you don’t complete both stages in one sitting, at the end of your affordability calculation we’ll send you details via email to allow you to complete your DIP within 30 days. Make sure you provide your email address and mobile number to be able to start from where you left off.

    Launch Affordability Calculator

    Need help? Chat to us via webchat or call us on 0345 607 9852

    Important information: We will use the information obtained from the credit check to undertake an automated assessment of your ability to afford the mortgage. Where we assess it is not affordable, your application may be rejected without being manually assessed by the Society. If the information you provide in the Affordability Calculator indicates that we might be able to lend to you, we will then carry out a soft credit check.

    IF YOU FAIL TO KEEP UP WITH PAYMENTS ON YOUR MORTGAGE A 'RECEIVER OF RENT' MAY BE APPOINTED AND/OR YOUR RENTAL PROPERTY MAY BE REPOSSESSED. MOST BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FCA.

    *To help maintain service and quality, some telephone calls may be recorded and monitored.

    Site intended for UK residents only. Skipton Building Society is a member of the Building Societies Association. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under registration number 153706, for accepting deposits, advising on and arranging mortgages and providing Restricted financial advice. Principal Office, The Bailey, Skipton, North Yorkshire, BD23 1DN.

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