Barclays targeting £500,000+ buy-to-let mortgages with 1.50% rate
Barclays has launched a super-low buy-to-let mortgage in a move to target landlords looking for larger loans.
The buy-to-let fixed rate is as low as 1.50%, and it is available for buy-to-let mortgages between £500,000 and £2,000,000.
At the end of the fixed period, which expires on the 31 January 2020, the mortgage reverts to the Barclays Bank Base Rate plus 4.44% - currently 4.74%. The overall cost for comparison is 4.28% APRC representative.
The 1.50% rate has a £2,450 arrangement fee and early repayment charges until 31 January 2020. Applicants will need a 40% deposit to qualify.
Aaron Strutt, product director at Trinity Financial, says: “If you are looking for a short-term large buy-to-let mortgage it is hard to look past Barclays rate, especially as the bank provides a free property valuation and typically covers the cost of remortgaging.
“For those who prefer more payment security, Barclays has a five-year fix with the same loan size limits although it is 0.67% more expensive. Bank of Ireland and Platform offer even lower fixed rates, but the maximum loan size is capped at £500,000.”
Representative example: A mortgage of £500,000 payable over 25 years, initially at a fixed rate until 31/01/2020 at 1.50% and then on a variable rate of 4.74% for the remaining 23 years, would require 25 monthly repayments of £1,999.68 followed by 275 monthly repayments of £2,776.07. The total amount repayable would be £813,411.25 made up of the loan amount, plus interest (£313,411.25) and fees of £2,450. The overall cost for comparison is 4.28% APRC representative.
Call Trinity Financial on 020 7016 0790 to secure a buy-to-let mortgage