Borrowers can choose from a stepped discounted loan and fixed rates over two, five or ten years.
The stepped buy-to-let loan offers discounts of 1%, 0.75% and 0.5% in each of the first three years. This means current pay rates are 4.74 per cent until 1 March 2004, 4.99 per cent until 1 March 2005 and 5.24 per cent until 1 March 2006 (APR 5.9 per cent variable). From 1 March 2006 interest will be payable at the standard variable buy-to-let rate which is currently 5.74 per cent.
The flexible features of Legal & General Mortgages’ buy-to-let mortgages mean borrowers can make overpayments, underpayments, take payment holidays and reborrow from their accumulated reserve. An early repayment charge of 1% of the amount borrowed will be payable during the three year discount period on full redemption only.
Buy-to-let customers can also choose between three fixed rate loans: a two year fix available at 5.35%; a five year fix at 5.59%; and a ten year fix at 5.74%.