Barclays target £1 million+ buy-to-let landlord mortgages with 1.54% two-year fix

by Aaron Strutt

Jun 24 2017

Barclays has launched an impressively low 1.54% rate to target wealthier buy-to-let landlords who are purchasing or remortgaging a property. It is available for loans between £500,000 and £2 million.

The 1.54% fixed mortgage rate, which expires on the 31 October 2019, will revert to 4.74% - which is the BBBR plus 4.49%. The overall cost for comparison is 4.27% APRC representative.

Barclays super-low buy-to-let mortgage has a £1,950 arrangement fee, and 3% early repayment charges apply until 31 October 2019. Applicants will need a 40% deposit to qualify, and the rate is available on interest-only or capital repayment.

Aaron Strutt, product director at Trinity Financial, says: “The bank will assess the rental income the property generates and if it isn’t sufficient, it can use your salary to increase the mortgage and ensure it is affordable. Barclays will want to know how many properties you own and the total combined monthly mortgage repayments.”

“If you are looking for a larger buy-to-let loan, Trinity’s brokers will typically approach the specialist high-net-worth teams at the high street lenders. The private banks typically have higher rates and percentage based arrangement fees.”

Representative example: A mortgage of £500,000 payable over 25 years, initially on a fixed rate for 24 months at 1.99% and then on a variable rate of 4.54% for the remaining 23 years, would require 24 monthly repayments of £1,058.42 followed by 276 monthly repayments of £1,369.07. The total amount repayable would be £404,593.40 made up of the loan amount, plus interest (£153,265.40) and fees of £999. The overall cost for comparison is 4.20% APRC representative.

The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.

Call Trinity Financial on 020 7016 0790 to secure a buy-to-let mortgage.