Products offer flexible terms for property purchases, remortgaging, and capital raising
Swansea Building Society has launched two new mortgage products aimed at limited companies investing in buy-to-let and holiday-let properties.
Available starting this week, the new products offer flexible terms for property purchases, remortgaging, and capital raising.
The first product, the Limited Company Buy to Let Mortgage (LBTL60), provides a variable interest rate of 6.35%, which is 0.55% above the lender’s base rate, currently set at 5.80%. Loans are available between £50,000 and £500,000 with a maximum loan-to-value (LTV) ratio of 60%.
Borrowers must pay a £250 application fee and a 1.5% arrangement fee, which can be added to the loan. Repayments are available on a capital and interest basis or interest-only, with an early repayment charge of 1% for the first three years.
The product requires rental income to cover at least 125% of mortgage payments, and personal income will not be considered in the affordability assessment. The mortgage is available to property-owning directors of UK-registered companies. Properties must be valued at a minimum of £75,000, and one director must hold or commit to obtaining a Rent Smart Wales licence within three months of completion.
We are excited to introduce two new mortgage products available from today October 1, 2024. https://t.co/G0P95LYITN
— Swansea Building Soc (@SwanseaBS) October 1, 2024
The second product, the Limited Company Holiday Let Mortgage (LHOL60), is designed for limited companies investing in holiday let properties. It also offers a variable interest rate of 6.35%, 0.55% above the lender’s base rate.
Loans range from £50,000 to £155,000, with a 60% maximum LTV ratio. Borrowers must pay the same £250 application fee and 1.5% arrangement fee, with an early repayment charge of 1% for the first three years.
For holiday lets, rental income must cover at least 145% of mortgage payments, based on a stressed mortgage rate. The property must meet holiday-let criteria, and companies must provide rental income verification from a holiday letting agent. In addition, the highest-earning director must have a minimum income of £35,000 from employment or self-employment.
“We are thrilled to expand our mortgage offerings with products tailored to limited companies, providing flexibility and support to investors in the buy-to-let and holiday-let markets,” said Alun Williams (pictured), chief executive of Swansea Building Society. “These products reflect our commitment to meeting the needs of the growing property investment sector and our dedication to helping businesses expand their property portfolios.”
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