TSB Buy To Let Mortgages
Compare TSB Buy To Let Mortgages
Whether you are a first time landlord or an experienced rental property owner, TSB could help you to get the right buy to let mortgage deal. Some of the features of TSB buy to let mortgage include:
- Get a lending decision that is based on your expected rental income only, rather than other factors
- You can get a standard TSB buy to let mortgage of up to 75% loan to value (LTV). For new build properties you can get a mortgage of up to 65% LTV
- Borrow from £25,000 up to £1m
- You can borrow up to £1m on any individual property and you can take out up to three TSB buy to let mortgages as long as the total value doesn’t exceed £2m
- Flexibility – repay up to 10% of the mortgage balance each year without incurring early repayment charges
- Mortgages available on terms of 1 to 40 years
Types of buy to let mortgage available from TSB
At the present time you can choose from two different TSB buy to let mortgage:
- TSB buy to let fixed rate mortgages – these mortgages are available for two years at up to 75% loan to value (LTV).
- TSB buy to let tracker mortgages – these mortgages are available for two years at up to 75% loan to value (LTV)
You can choose from a repayment buy to let mortgage deal or an interest only buy to let mortgage deal. With a repayment mortgage you will repay some of the capital as well as the interest each month, which means that as long as you keep up with your mortgage repayments, the entire mortgage sum will be repaid at the end of the term. With an interest only mortgage you will only pay interest on your loan each month, but will need to have a plan in place to repay the capital (the full mortgage amount) at the end of the mortgage term.
Changes to buy to let mortgages
Before applying for a buy to let mortgage from TSB, the changes of the buy to let mortgage regulations should be considered.
The Bank of England’s Prudential Regulation Authority amended the regulations in 2017, which resulted in a change in how lenders reviewed buy to let applications
Stricter Stress Test: From 2017, lenders will implement a stricter income stress test. This means that lenders will take every precaution to ensure that landlords do not fall into arrears on their mortgage repayments. As a result, during a landlord’s application they need to demonstrate that they can make mortgage repayments even in the event that interest rates hit 5.5%.
Review of Entire Portfolio: Landlords can no longer spread equity across their portfolio to cover up a property that does not provide a positive return. This affects the buy to let mortgage application process, as lenders will take an in-depth review of the landlord’s portfolio and if the landlord has one or more properties that are not profitable then a buy to let mortgage will not be granted.
Increased Rental Coverage Ratio: The majority of lenders will require a higher rental coverage ratio than before. Prior to 2017, landlords could receive a buy to let mortgage with a rental coverage ratio of 125%. However, lenders now require a rental coverage ratio of 145% for standard buy to lets and 170% for houses in multiple occupation. It should be noted that lenders will not allow landlords to simply increase the rent by 20% to meet the criteria, as lenders will only accept a rental coverage ratio estimate that is based on a professional surveyor’s valuation.
Eligibility criteria for a TSB buy to let mortgage deal
In order to take advantage of a buy to let mortgage offer from TSB you will need to meet certain application criteria, some of which include:
- You will need to be at least 18 years of to apply for a TSB buy to let mortgage
- You will usually need to be 75 or under at the date the mortgage term ends
- You can apply for a mortgage between the values of £25,005 and £1m
- You can apply for a TSB buy to let mortgage either alone or as a joint applicant
To compare TSB buy to let mortgage deals with different leading buy to let mortgage rates and get the most effective deals for you, speak to our mortgage team. We offer a free, whole of market independent mortgage comparison service to help you find the best deal for you. Speak to our specialist team to help you find the right buy to let mortgage option that meets your needs.
Call 0117 403 4222 or request callback from our mortgage team.