Who can apply for a Buy to Let mortgage?
How much can I borrow?
Will my tax situation change?
Can I make overpayments on my Buy to Let mortgage?
Can I take payment holidays?
What happens if I want to buy a new house in the future?
What if I need to borrow more money in the future?
Can I move my Freestyle Buy to Let mortgage to a different property?
Do I get any benefits from taking more than one Buy to Let mortgage with you?
Who can apply for a Buy to Let mortgage?
UK residents aged between 25 and 64 (subject to income). Joint applicants,
the employed and the self-employed. Professional landlords and guarantor applications
will be considered (subject to lending criteria). Minimum employment income
£20,000 for single applicants or £30,000 joint (excluding rental
income).
If you have a Freestyle Mortgage on the property you live in, you are eligible for reduced Buy to Let rates.
We also offer a fast track service for existing Freestyle customers which means we'll instruct a valuation as soon as we've agreed to lend you the money. As we've already got all your documentation, we can get your application moving straightaway.
Preferential lending terms
We take a flexible approach to lending on Freestyle Buy to Let mortgages.
Through our Affordability Boost feature we'll take your income and outstanding
residential mortgage into account which means you could borrow up to £50,000
more. Call 0845 609 0253 for further details.
Add fees to loan
Buying property is expensive enough. The good news is we can assist
you with some of your costs.
See our tariff of charges for full details of fees.
Half price fees for multiple mortgages
For your first Buy to Let mortgage an arrangement fee will be payable.
A booking fee will also apply on our fixed rate Buy to Let mortgages.
For additional properties, you will only be charged half price arrangement/booking fees on a maximum of nine further Buy to Let mortgages within the 12 month period following Approval in Principle (AIP) stage of your first application.
To get a quote for these products simply go to the Buy to Let quick quote calculator and select to see the reduced fee products.
Valuation Fee
If you use the Freestyle remortgage package you'll pay nothing
for a standard valuation. This valuation is provided to us to ensure that the
property is suitable as security for the loan.
For all other customers, if you choose to add the valuation fee to your loan, the standard valuation fee and the valuation admin fee are reimbursed to you within seven working days from completion of your mortgage and the amount will be added to your loan.
Legal fees
Using the Freestyle remortgage package you have two options:
Either way, the solicitor will act solely on our behalf to carry out the legal work for the remortgage. If additional non-standard legal work is required, or you require your own advice, you will need to pay for this.
For all other customers you can add mortgage legal fees of £250 to your loan. You'll need to pay your solicitor and we'll refund £250 within 7 days of your mortgage completing. £250 will then be added to your loan.
Remember adding fees to your loan will increase your monthly payments, interest payable and remaining balance secured on your property.
Will my tax situation change?
When you decide to buy to let your tax profile may change. For example,
should you sell a property, any profits may be liable to Capital Gains Tax (CGT)
charged at the highest rate of income tax you pay. You may wish to consider
funding the properties under joint names to take advantage of two personal allowances.
Buying to let should be regarded as a long term investment. One of the advantages of this is that after three years ownership you are eligible for 'Taper' relief which will reduce your CGT bill.
Income tax is also payable on rental income you receive from your tenants. This is something you could obtain advice on from your financial adviser or your local HM Revenue and Customs office. The tax you pay is variable according to any allowed deductible expenses and your individual circumstances. A tax/financial adviser can tell you more about this.
Land registration
If your property is situated in Scotland then it must be registered
with the Local Authority. It is an offence to let any residential property without
being suitably registered. For full details visit the Land
Registry website.
Can I make overpayments on my Buy to Let mortgage?
You can make overpayments either regularly or as a lump sum (minimum lump sum amount £1,000). The effect
of overpayments applies immediately because we calculate interest daily. On
making an overpayment, you can choose to have your account recalculated and
your monthly payments or term decreased.
With our Freestyle Buy to Let fixed rate mortgage, you can overpay up to 10% of the balance outstanding every year. Early repayment charges apply if you overpay more than 10% of the capital outstanding in 12 months, or if you repay your mortgage in full within your fixed rate period.
With our Freestyle Buy to Let discounted rate mortgage, you can make overpayments of unlimited amounts. However, early repayment charges will apply if you repay your mortgage in full within your discount period.
Your overpayments will build up a Prepayment Reserve which can be borrowed back whenever you want (subject to lending criteria) at our Buy to Let additional borrowing rates available at the time.
An admin fee applies each time you borrow from your Prepayment Reserve and any funds borrowed back will increase your monthly payments, the interest payable and the remaining balance secured on your property.
Can I take payment holidays?
Once you've made six consecutive payments, you can take up to two
payment holidays a year per property subject to sufficient funds in your Prepayment Reserve. To arrange a payment holiday you will need to give us 22 days' notice.
Taking a payment holiday will increase your monthly payments, the interest payable and the remaining balance secured on your property.
What happens if I want to buy a new house in
the future?
You can purchase up to ten rental properties with our Buy to Let mortgage, subject to lending terms, in addition to a Standard Life Bank residential mortgage. All we ask is that the combined balance of your mortgages (including your residential mortgage) with Standard Life Bank does not exceed £500,000. If you wish to purchase a new property, you must take out a new Buy to Let mortgage. You can use your existing Buy to Let mortgage Prepayment Reserve to fund the deposit for a further rental property.
If you require additional funding, we will be happy to consider your application. Call us direct on 0845 609 0253 for further information.
What if I need to borrow more money in the future?
Buy to Let mortgages are flexible to keep pace with changes in your
circumstances. So, for example, if the value of your property increases or you earn more than you did when you first took out your Freestyle Mortgage, you
could find that you qualify for a Credit Re-assessment which may mean you could
borrow more.
Click here to see our Buy to Let additional borrowing rates.
A fee of £99 applies for a Credit Re-assessment and if we can lend you more, the minimum drawdown you can make is £1,000. You may also have to pay a valuation fee.
Remember, further borrowing will increase your monthly repayments, the interest payable and the remaining balance secured on your property.
Can I move my Freestyle Buy to Let mortgage
to a different property?
This depends on the type of Freestyle Buy to Let mortgage you have.
When you start to think about changing your property, give us a call and we'll
discuss your options.
Fixed rate Buy to Let mortgages are fully portable and can move with you if you change property. If you require any additional funding, you can choose from our current product range available at that time.
Discounted rate Buy to Let mortgages are not portable. Customers who change property can either take out another discounted rate Buy to Let mortgage if available or switch to a fixed rate Buy to Let mortgage (a booking fee may apply).
Early repayment charges may apply. However, as long as you complete your new Freestyle Buy to Let mortgage within 90 days of redeeming your original one, these charges will be refunded.
Do I get any benefits from taking more than one Buy
to Let mortgage with you?
For additional properties you will only be charged half price arrangement/booking
fees on a maximum of 9 further Buy to Let mortgages within the 12 month period
following Approval in Principle (AIP) stage of your first application.
To get a quote for these products simply use our Buy to Let quick quote calculator and select to see the reduced fee products.
