Monmouthshire Building Society Launches New Portfolio Mortgage Range

Monmouthshire Building Society has launched a new portfolio mortgage range.

Key features of the range:

  • Landlords can mortgage multiple investment type properties under one loan
  • Landlords can finance diverse portfolios with any mix of Buy-to-Let, Holiday Let, House of Multiple Occupancy (HMO) and Multi Unit Freehold properties
  • Loan to Value (LTV) and Interest Coverage Ratio (ICR) requirements can be assessed across the whole portfolio
  • Borrowers will have the flexibility to add, remove and substitute properties in the future subject to further review of the portfolio

Quote from Dawn Gunter, Chief Operating Officer at Monmouthshire Building Society: ‘The private rental sector is going through a lot of change and landlords have had little choice but to adapt. For example, the market has seen many professional landlords invest in more diverse portfolios and set up limited companies to manage their property businesses.

As a lender, we need to respond by providing mortgages that meet the evolving needs of landlords. Our new portfolio range offers landlords and mortgage intermediaries a simple, flexible solution to financing diverse property portfolios.’

More information about the range:

  • Rates: 3.14% 2 Year Variable Discount and 3.54% 5 Year Variable Discount (1% Product Fee applies to both products)
  • Mortgage up to 20 properties
  • Maximum LTV of 75%
  • Minimum 145% ICR based on an interest rate of 5.5% or the initial pay rate plus 2% (whichever is greater)
  • Up to 25% capital repayments annually with no Early Repayment Charges
  • Any amount repaid above the annual 25% allowance will be subject to an Early Repayment Charge
  • The 2 Year product has an ERC of 2%
  • The 5 Year product has an ERC of 5% in year 1, 4% in year 2, 3% in year 3, 2% in years 4 and 5
  • Landlords will be able to apply direct to Monmouthshire Building Society or through an intermediary
  • Available to UK based individual landlords and limited companies / SPVs with 2+ years’ experience
  • For landlords with 4 or more mortgaged rental/investment type properties and a maximum of 20 overall (including mortgaged with other lenders and unencumbered)
  • Purchase and remortgage loans available
  • Further eligibility and lending criteria will apply and applications are subject to a full underwriting assessment of the portfolio
  • Most Buy to Let Mortgages (investment type property loans) are not regulated by the Financial Conduct Authority
  • If you fail to keep up with payments on your mortgage a ‘receiver of rent’ may be appointed and/or your rental property may be repossessed