With Abbey buy-to-let mortgages, you can make the right decision in turning your hard earned money into profitable investment. They assist in building your portfolio and can aid the borrowing of up to £5M, yes up to £5m. Abbey mortgages is open to both new comers as well as those seasoned practitioners in the field.

WHY ABBEY BUY-TO-LET MORTGAGES?

You are entitled to borrow up to 75% of the value of the property.

You can also borrow between £ 25,001 and £ 1m for every property although exceptions are given to individuals with large portfolios of up to £5m per borrower.

Abbey Buy-to-let mortgages is also flexible as you have the choice of paying back either the capital and interest or only making interest only repayments.

Users also have the luxury to overpay up to 10% each year to reduce the mortgage term thereby preventing an early repayment charge.

WHO ARE ELIGIBLE

To qualify for Abbey Buy-to-Let mortgage, you must have a potential rental income of at least 125% of your mortgage term based on an interest-only basis. Abbey mortgages is also made available to interested private parties who intend to purchase residential property.

They also give consideration to Holiday and student under the following conditions

• To be considered for holiday lets, the property must have been a holiday let for three years
• For student lets, only 3 tenants are allowed on the maximum.

There are also various mortgage repayment options available to Abbey Buy-to-let customers and also certain key things to be considered.

Regardless of your mortgage term, there are two basic mortgage schemes available for repayments which include repayment mortgage and interest only mortgage.

For repayment mortgage, you are expected to pay back everything include the interest accrued on your mortgage at the end of your mortgage term

With Woolwich first time buyer mortgages, you can be relieved of stress if you decide to own a new home and it is just what’s needed for first time mortgage buyers. The benefits listed below are made to improve the ease of budgeting during the early periods of your new home.

Some of the benefits of the first time buyer mortgages are 

• No higher lending charge

• The comfort of knowing how much you´re paying each month for the fixed rate period

• The chance to buy with another person so you can increase the amount you borrow

It is quite imperative to inform prospective buyers of the first time buyer mortgages that an early repayment charge may be required although for a fixed period of time. At Woolwich all customers are entitled to all the products including the first time buyers.

Woolwich has also provided a comprehensive guide to make first time buying experience pleasurable and I would love to share a few.

It is recommended that first time buyers needn’t be in a hurry or rush. You are implored to do adequate research so that you can end up with a home that matches your need. Take time out to even visit the desired property at different times of the day and also check its neighbourhood.

If you are not sure if purchasing the home would be the ideal thing, then it is advisable to seek the opinion of a second or even third party. You can go there with a friend and family member and seek their unbiased opinion about the building.

The amount you are liable to borrow depends on your situation or circumstances. Things to take note include outgoings, deposit, credit history, income e.t.c and whether you intend to purchase solely or with the help of others.

With Woolwich Buy to Let mortgages, You are entitled to the following

·         A choice as to how you want to borrow. You can borrow in your own name or as a group of up to four private individuals.

·         Applications for new Special Purpose Vehicle (SPV) Limited Companies and/or Limited Liability Partnerships will no longer be accepted, however we will continue to accept applications from our existing Woolwich BTL SPV and LLP mortgage customers.

·         A choice of how to let your Buy to Let property from a range of acceptable options. You’re not restricted to just an Assured Short hold Tenancy.

·         Mortgages of £35,000 to £1m (subject to product availability) on an individual property, over a term of 5 to 25 years. You can borrow on an unlimited number of Buy to Let properties with us up to £5m subject to formal approval.

·         Repayments on an interest-only, and/or capital repayment basis.

·         Portability so you can transfer your Buy to Let mortgage to another Buy to Let property

You do not need to be an earner of a regular fixed income for you to apply for Woolwich BTL mortgages especially if you meet the requirements. If a minimum income is required then there is the need for the main customer to be an earner and have proofs to show that his/her gross annual income is about £20,000 or more.

With Woolwich tracker mortgages, you are opened to a variety of options. This is especially useful for individuals who want their mortgage to track/be in line with Barclays Base Rate. These has some implications which means that when Barclays Bank rate falls, your monthly repayments fall likewise and if the base rate should rise, your monthly repayments tracks it and rises in the same way.

With Woolwich Tracker Mortgages, You are entitled to:

·         A variable rate that rises and falls with changes to the Barclays Bank Base Rate (BBBR).

·         Flexibility. Our lifetime trackers carry no early repayment charges on selected mortgages.

·         Freedom from application fees on selected products.

·         The convenience of a portable mortgage, so you can take your mortgage to a new home if you move.

Woolwich is presently offering two different types of tracker.

LIFETIME TRACKER

With Woolwich lifetime tracker, your rate tracks at a certain percentage above that of the Barclays Base rate for the entire regime of your mortgage and delivering flexibility and choice. You also have the luxury of overpaying up to 10% during the Early Repayment Charge Period without incurring an ERC.

2 YEAR TRACKER

Woolwich 2-Year tracker period is currently not available

When you select any of their current tracker mortgages, you are entitled to a range of fringe benefits. Let’s consider a client of the 1-year step lifetime tracker, he/she is entitles to BBBR + 1.48% (currently valid till 31.01.2011), The overall cost of comparison is 3.0% APR. You need to apply with a fee of £999 and you are entitled to borrow up to 60% of the value of your home. Your early repayment charge is 2% of the balance which is repaid till 31/01/2013.

This hitherto could lead to a reduction in your mortgage term or in your monthly mortagage repayment and yet still possess a strong hold on your savings.

The use of offsetting could be very imperative no matter the level of interest rates. They infact come in handy when rates are very low and affect the returns obtained from your account.

Let’s consider this case scenario, You possess a mortgage of £180,000 and your total balance is £30,000 {present in savings (ISA inclusive)} and current accounts to offset against your mortgage. Your mortgage interest will be calculated on the remaining balance of £150,000 only giving you the luxury to save thousands of pounds on interest payment over the duration of the mortgage.

You now have the opportunity to decide on what the savings could be used for which could be; to reduce the term of your mortgage, reduce your mortgage repayments.

It is worth stating that access to your savings is intact as long as you have your offset mortgage. You can also make use of their Offset calculator to determine how much you could save.

You can also refer to their tariff of charges to obtain full information on fees related to mortgages as well as casual reference to their legal information

With Woolwich fixed rate mortgages, you have the luxury to make a set of monthly repayment for given period of time without allegiance to fluctuations in interest rate. It is a perfect option if you hope to plan ahead and want to stay tightly to a budget.

These are the benefits you stand to gain from Woolwich Fixed Rate Mortgages

You are entitled to a fixed rate period which could span from two to ten years.

You also have the comfort to know how much you are entitled to pay before hand during the fixed rate duration.

Furthermore, you are entitled to the flexibility to overpay with as much as 10% per year without been liable to an early repayment charge (it could be up to 5% per year on their 7-year fixed rate mortgage) during the fixed rate regime. You will also get an early repayment charge on the balance paid if you decide to repay the mortgage as a whole, part or even decide to swap to another venture during the fixed rate regime.

During the expiration of the fixed rate regime, you can then return to a variable interest rate which tracks back to the Barclays Bank Base Rate (BBBR)

You also enjoy the convenience of an imponderable mortgage which allows you to go with your mortgage when you decide to leave.

There are various products under the fixed rate mortgage in which you can take advantage of. They have the 2-year fixed product, 2 year fixed (Minimum loan £50000), e.t.c

Let’s consider initial rate of 3.79%, the overall cost comparison is about 2.8% APR and the application fee cost £999. You are entitled to borrow up to 70% of the value of your home and a 3% early repayment charge which has to be repaid until 31/01/2012.

With Abbey flexible mortgage, you are in control. The flexible mortgage gives you added freedom and the possibility of a long term deal. It gives room for users to offset their savings against their mortgages. So with more money in your savings, the less you will be charged to pay making it possible for you to offset your mortgage earlier. You can also inquire how much you could borrow with their online mortgage calculator or even glance through their current flexible mortgage deals.

Features of Abbey Flexible Mortgage

One great benefit worthy of citing is the freedom to choose. You therefore cab overpay when you choose so that you are entitled to less interest over your mortgage term. If the need arises, you can underpay or even take a payment holiday whenever desired.

Another reason to go with Abbey flexible mortgages is the savings possibility. With Abbey, you can offset your savings against your mortgage and then reduce the interest you pay over the duration of your mortgage.

Even more incredible is the likelihood of reduced payments. What this means is that you end up paying lower than the Bank of England base rate. Their flexible mortgage tracks the Bank of England base rate so you hitherto benefit from reduced monthly repayments if the rates reduce and vice versa if the rates decide to go up

Added flexibility associated with Abbey flexible mortgage gives room for a long term deal so you do not need to change deals every few years.

You are also entitled to request for more money at the same rate of the mortgage up to an agreed cap.

More importantly is the added benefit packages that characterize Abbey flexible mortgage. These packages include a free basic valuation, standard legal fees have been squared for remortgaging or a £250 cash back if you intend to swapping home earlier than planned.

Features of Abbey Buy-to-let Mortgages

With Abbey’s Buy-to-Let mortgages, you are entitled to borrow up to 75% value of the property. It ranges between £25,001 to £1 m per property although larger portfolios are usually considered up to a maximum of £5m per borrower.

You also have different options of payment. You can decide to pay back the capital and interest or make interest only repayments.

Furthermore, you have the luxury of up to 10% each year to reduce your mortgage tenure without incurring an early repayment charge or even reduce your monthly repayments.

To be eligible for Abbey Buy-to-let mortgage, your possible rental income must be at least 125% of your mortgage repayments on an interest-only basis (usually calculated using Abbey’s Standard Variable Mortgage rate or the actual product rate, depending on which is higher). They only give a helping hand to private individuals wishing to purchase a residential property.

Special consideration is usually given to holiday and student lets. For Holiday lets, the property must have been in such form for a minimum of three years and while for student lets you are allowed a maximum of three tenants.

It is advisable to patronize Abbey’s fixed Buy-to-let mortgage because of the peace of mind associated with it since you know exactly what your repayments will be for a fixed period.

Please note that your property may be repossessed if you do not keep up with the agreed monthly repayments on your mortgage

Abbey offers various fixed mortgage plans which are: 2-Year Fixed rate Mortgages, 3-Year Fixed rate Mortgages, 4-Year Fixed rate Mortgages, 5-Year Fixed rate Mortgages.

2 YEAR RIXED RATE MORTAGES

With Abbey 2 year fixed rate Mortgages, You need to deposit an initial rate of 3.69%, then you pay a standard variable rate of about 4.24%. The Overall cost comparison for the 2 year fixed rate mortgage is 4.3% while the booking fee is £799. A minimum deposit of 30% is required and the Maximum Loan size allowable is £1 Million. Only first time buyers and Movers are entitled to this product.

3 YEAR RIXED RATE MORTAGES

With the 3 year Fixed rate mortgages; you can begin with an initial rate of 4.49% and a 4.24% standard variable rate. The overall cost comparison for this deal is 4.5% and is subject to a booking fee of £995. The minimum deposit allowed for the 3 year fixed mortgage is 20% and is subject to a maximum loan size of £550,000. Only First time buyers and movers only are entitled to this deal.

The same deal applies for Remortgaging but with an initial rate of 4.59% instead

With Abbey Tracker Mortgages, Your rates are usually the same with the Bank of England base rate for a stipulated period of time after which your interest rate returns to the standard variable rate. This implies that You tend to pay lower if interest rates fall but pay higher when interest rate rises.

WHY DO I NEED A TRACKER MORTGAGE?

PAYMENT SUBSIDY: You will definitely leverage from lower repayment especially if the bank of England rates fall. Nevertheless, Your Payments can increase if the Bank rate increases as well.

OVERPAY: You can unbelievably save up to 10% of your obtrusive mortgage balance and even slash your monthly repayments without the need to pay an early repayment charge.

PACKAGE BENEFITS: although only available on some Tracker mortgages, You can get benefits such as a free basic appraisal of a property up to the tune of £2.5 million. Yu can also entitled to standard legal fees or £250 cash back.

RISK: Users need to be able to bear the rise and fall of this repayment rates.

Various Tracker Mortgage interest rates are available with abbey and they include Fixed Rate Mortgage rates, Tracker Mortgage Rates, Flexible Mortgage rates and Buy-to-let Mortgage Rates.

It is worth of note that Abbey Mortgage products can be withdrawn or changed any time and are only promised at the time of application. These rates are quoted for users who intend to purchase a property or re mortgaging from another lender.

There are 2 kinds of plan for the tracker mortgage rates. They are the 2 Year Tracker Mortgages and the 3 Year Tracker Mortgages.

For the 2 Year Tracker Mortgage Plan, An initial rate of 2.69% qualifies you for a +2.19% difference to bank of England base rate, a 4.24% standard variable rate, Overall cost comparison of 4.1%. The Booking fee is £995 and the minimum deposit is 30%. The maximum loan size is £550,000 and only eligible for first time buyer and movers only.