Examples of where a Consumer Buy to Let loan may apply are:
- When you wish to use a property as security which you purchased and used to live in. This is quite common for young married couples who both owned properties prior to getting married leaving one property empty following the wedding (or even before the wedding).
- When you wish to use a property as security which you have been gifted. It is not uncommon for family and friends to gift property whilst they are alive as part of inheritance tax planning or for any other reason.
- When you wish to use a property as security which you have inherited. Quite often parents or other family members bequeath property in a will.
Businesses must have the appropriate registration to conduct Consumer Buy to Let business. To check if a lender or intermediary is registered, visit the FCA website.
Features of Our Consumer Buy to Let Loans
Lender | Affirmative Finance Limited 7 St James Square Manchester M2 6XX | |
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Purpose of Loan | We have no restrictions on the purpose for which the loan can be made other than the purpose must be legal. | |
Security | A mortgage over property in England, Wales or Scotland will be required. | |
Duration | Up to 12 months only. | |
Borrowing Rate | There will be a fixed interest only monthly rate. The interest can be paid by you monthly or you can opt for a retained interest product. | |
Cost of Loan | The figures are representative for a total loan in the sum £100,000.00 which is borrowed for a 12-month period on a retained interest basis. | |
Total Amount of Credit | £78,714.65 | |
Total Cost of Credit | £23,571.92 | |
Total Amount To Be Repaid | £102,286.57 | |
Annual Percentage Rate of Charge | 30.0% | |
Other Costs | Other costs that can be incurred which are not set out in the above example can be found in the Tariff of Charges. | |
Repayment | An interest only product. The capital must be repaid in one lump sum at the end of the loan. There is the right to repay the loan early, either fully or partially. Partial repayments will only be accepted on a date in which a monthly payment falls due under the terms of the loan. There is no early repayment charge. | |
Valuation | It will be necessary to obtain a valuation over the property which we are obtaining as security. We will make arrangements for the valuation to be carried out however you will be responsible for making payment to the panel manager or valuer for the cost of the valuation. See our Valuation Scale. | |
Ancillary Services | Buildings insurance must be effected and maintained whilst the loan is outstanding at an amount at least equal to our valuer’s recommended figure and the property maintained in good order. You may choose who you wish to use for your buildings insurance but our interest must be noted. | |
Non-Compliance | If you do not make any payments due on time, fail to redeem the loan by the end of the term or default on the loan you will incur additional costs for our work and the costs of any suppliers that we may utilise (including but not limited to solicitors and insurers) in dealing with the matter. | |
As a last resort, your property may be repossessed if you do not keep up with payments. |