Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 04/11/2019

Gatehouse Bank now accepts first-time landlords and first-time buyers on all of its buy-to-let mortgages and has broadened its eligibility criteria for both buy-to-let and home purchase plans.

This includes reducing its minimum valuation for houses of multiple occupations and multi-unit freehold blocks in the UK from £75,000 to £55,000.

 

More opportunity for contractors to get a buy-to-let mortgage

The bank has also stated that it has enhanced its manual underwriting processes to improve access for contractors to buy-to-let mortgages and will take their full income into account.  Find out more about how being self-employed could impact your finances.

Charles Haresnape, CEO of Gatehouse Bank, said:

“We are continually reviewing every aspect of our buy-to-let and home purchase plan ranges, from the rates through to the small print.

“We will continue to expand the audience for our products and endeavour to better serve those customers who find it difficult to access finance elsewhere.

"Our human approach coupled with smart technology allows us to individually assess applications, meaning we can take all our customers’ finances into account, and no one is turned away just because the computer says no.”

 

First-time landlord buy-to-let mortgage rates

Provider

Rate

APRC

Period

Maximum loan-to-value

Purchase or Remortgage

NatWest

1.64% variable, reverting to 4.74%

4.3%

31/1/2022

60%

Purchase only

Post Office Money

1.78% fixed to 31/01/2022, reverting to 5.24%

4.7%

31/01/2022

60%

Purchase and remortgage

Post Office Money

1.89% fixed to 31/01/2022, reverting to 5.24%

4.8%

31/01/2022

75%

Purchase and remortgage

Principality Building Society

2.15% discounted variable (collared at 2.00%), reverting to 5.05%

4.6%

31/01/2022

75%

Purchase and remortgage

Virgin Money

1.74% fixed 01/03/2023, reverting to 5.19%

4.4%

01/03/2023

60%

Purchase and remortgage

Our table above shows a selection of first-time landlord buy-to-let mortgages across a range of loan-to-values (LTVs) and for both purchase and remortgage.

One of the most competitive rates in the market is from NatWest, with its 1.64% variable 60% LTV mortgage to the end of January 2022. The mortgage can only be used to purchase a buy-to-let property and it only allows up to a maximum of 10 buy-to-let properties with a total maximum advance of £3.5m.  The minimum rental income is 135% of mortgage interest. Borrowers must be 70 years old or below at the end of the mortgage term. The arrangement fee is £995.

A good rate for a 60% buy-to-let mortgage that can be used to either purchase or remortgage a buy-to-let property is from Post Office Money. The rate is 1.78% fixed until the end of January 2022 and it has an arrangement fee of £495. You can only have a maximum of three buy-to-let properties and must have a minimum 145% rental income to mortgage interest. You cannot be older than 80 at the end of the mortgage.

If your LTV is higher, then the Post Office also has a 75% LTV buy-to-let mortgage at 1.89% fixed until the end of January 2022. The arrangement fee is also higher at £995, but all other terms are the same as the 60% version. Post Office Money lends in Great Britain and Northern Ireland.

 

For a variable rate, the Principality Building Society offers 2.15% discounted up to the end of January 2022 at 75% LTV. While the rate is higher than those on the table, it comes with no product fees. The maximum number of properties is three and the minimum rental income is 145% of mortgage interest.

Virgin Money has a lower variable rate of 1.74% fixed, for first-time landlords wanting a 60% buy-to-let mortgage. This has a sizeable arrangement fee of £1,995 and the deal runs until the 1 March 2023. The mortgage is available for purchase and remortgage. The maximum number of properties is three and rental income must be a minimum of 145% of mortgage interest. This mortgage comes with a maximum age at the end of the mortgage of 85 and is available in Great Britain and Northern Ireland.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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