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Anyone wanting to buy a holiday home in Gibraltar or spain with a view to renting it out now has more choice with the launch of a new buy-to-let mortgage from Norwich & Peterborough Building Society.
N&P is launching a new buy-to-let mortgage for people looking to buy a rental property in Gibraltar, as well as a new further advance product and new base rate tracker for its Spanish home loans.
The Gibraltar buy-to-let mortgage is a tracker at Bank base rate plus 1% for the full term of the loan. Maximum loan to value is 85% and there is a 0.5% reservation fee and a valuation fee of £135. There are no early repayment penalties.
Rental cover required is 125% of the mortgage interest payments and the minimum advance is £50,000. There is also a fixed rate option at 6.24%, fixed for three years, followed by Bank base rate plus 1% for the rest of the term.
Richard Barker, product manager for N&P, said: ‘We have been helping UK residents and ex-pats to buy or re-mortgage their main home, holiday property or retirement residence since 1998 and are pleased to now be increasing our offering to include buy-to-let properties too. Buy to let is a growing market in Gibraltar and we’re sure it will prove to be a popular choice for customers looking to invest in property there.’
The Spanish further advance product offers Bank base rate plus 0.89% for the term of the loan, maximum LTV of 75% with no reservation or redemption charges. The Spanish tracker loan offers Bank base rate plus 0.75% for the term, with an LTV of 75%, reservation fee of £599 and a valuation fee of £250.
Barker added: ‘We’ve launched this product in response to customer demand from people who have bought their home in the sun but are now looking to make improvements to it. The costs for additional borrowing are greater in Spain due to the involvement of a solicitor, so we were keen to offer customers a “fees-free” product.’
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