Chelsea launch new buy-to-let

Product details include:

The standard buy-to-let rate is charged for the life of the loan, which is the Society’s standard variable rate (currently 5.69 per cent) plus 0.25 per cent.

The product has an intial discount of 0.75 per cent for the first 12 months, giving an initial payable rate of 5.19 per cent.

The Society requires that the income generated as rent must equate to at least 130 per cent of the gross monthly interest-only mortgage payment (after the discounted period).

An early repayment charge of two per cent of the amount repaid applies for the first five years. However up to 20 per cent of the capital balance may be repaid each year without incurring an early repayment charge.