Penrith launches vacation rentals for expatriates and multi-unit offers
Penrith Building Society has launched an expatriate vacation rental product and a multi-unit mortgage.
For both products, the company has a limited distribution model and accepts mortgage applications from all intermediaries based in its central region (Cumbria, Yorkshire, Tyne & Wear, Northumberland, Durham & Lancashire).
Nationally, applications are accepted by appointed representatives of Mortgage Advice Bureau, Sesame, The Right Mortgage Network, directly authorized advisors who are members of the PMS Diamond Club and a number of selected channel partners.
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Vacation rental for expatriates is available to non-owner occupants, first-time buyers and / or first-time owners; clients are also expected to earn an income of £ 40,000.
It offers a maximum loan-to-value ratio (LTV) of 70% on a 3-year fixed rate at 4.25%. Applications are assessed on average on the low, medium and high season rental yield.
There is an application fee of £ 249, a product fee of £ 1,350 and a variable evaluation fee.
The maximum loan is £ 500,000, it is available for purchase and re-mortgage, AirBnB is permitted and clients can occupy the property for up to 60 days per year.
Meanwhile, the multi-unit mortgage is available for properties where part of the main property or a separate unit, for example an annex, will be rented out.
Long term leases, licenses and commercial rentals are not acceptable and at no time may the entire property be leased and at least 40% of the overall floor area must be used as residential accommodation on a owner occupancy.
Multiple occupancy houses (HMOs) are not acceptable, the maximum LTV on principal repayment is 80% and the maximum LTV on interest only is 50%.
The product available is a 3 year discount with a 3.49% pay rate, £ 249 administration fee, £ 800 product fee and variable evaluation fee.
The maximum loan value is £ 500,000 and it is available for purchase and re-mortgage.
Ed Appleby, Head of Intermediaries at the Penrith Building Society, said: “The company has been providing residential and rental mortgages to expats for several years.
“This new expat product was designed to give expats the opportunity to take advantage of the current UK holiday boom.
“Our vacation rental mortgage for expatriates is competitively priced and the eligibility criteria are very generous, with first-time buyers, first-time owners and non-owners eligible to apply.
“Brokers can struggle with unusual properties that have more than one kitchen or have a freestanding annex. Our multi-unit mortgage is perfect for clients looking to buy or remortgage a home with an annex or more than one unit on the same title.
“It is important to clarify that this is not for houses with multiple occupancy or where there is a commercial element to the dwelling. If you’re not sure whether a property meets our criteria, contact us and we’ll be happy to help! ”