Here’s a summary of the key points of our Buy to Let mortgages.

Lender details

UK Mortgage Lending Ltd trading as Pepper Money

4 Capital Quarter, Tyndall Street, Cardiff, CF10 4BZ.

Loan Purpose

Our mortgages can be used for first charge on a residential property for the purpose to be rented, subject to manual underwriting assessment after submission of application.

Property

The mortgage must be secured on a UK residential address in England, Wales or on the Isle of Wight.

We will not lend on any property with either ongoing movement or where monitoring is required, where this is identified by either the valuer, or where evident in the structural engineer’s report. The property must be of mortgageable condition when the loan completes.

Valuation

We will instruct the valuation once we have assessed the case and are happy to proceed. However, you can instruct the valuation before this point, but the valuation fee will not be refunded if after reviewing the case we’re unable to proceed.

Some mortgages offer free valuations – the product details for your mortgage will tell you if this is the case.

On 2-year rates we apply a stress to ensure the applicant will be able to afford the mortgage if rates rise. However, on our 5-year rates the affordability is calculated at the pay rate.

Mortgage Terms

We offer mortgages on a 2-year and 5-year fixed rate terms.

• Minimum Term 2 years
• Maximum Term 40 years
• Minimum Loan Amount £25,001
• Maximum Loan Amount £2,000,000 available to 65% LTV

All our loans must be on a full Capital and Interest or Interest only. Interest only to 80% LTV, supported by an acceptable repayment strategy and maximum age of 85.

Loan types

We offer fixed rate mortgages on a capital and interest repayment basis, or an interest-only basis.

A fixed rate mortgage has a fixed interest rate for a set period of time at the beginning of the mortgage. At the expiry of the fixed rate period, the reversion rate, which is the lenders variable rate, will be applied to the mortgage. An Early Repayment Charge will be applicable during the fixed rate period.

An interest only mortgage is a mortgage where no capital payments are made during the life of the loan. You will need to arrange for a repayment strategy to be put in place to ensure the capital can be repaid.

Compliance with the conditions of the mortgage contract does not ensure repayment of the total amount of credit.

Representative Example

Total mortgage amount: £101,310.00 | Fixed Interest rate: 3.20% first 24 months & Variable Interest Rate: 4.70% remaining 216 months | Term of Loan: 240 months | Interest payable: £52,862 | Total amount repayable £154,172.70 | 4.8% APRC

Possible Further Costs

There may be further costs which you may have to pay depending on particular events, or for a particular service provided by us. These are detailed in our Tariff of Fees and Charges.

Payment Options

Payments must be made monthly by Direct Debit for the duration of the term.

Early Repayment

You have the right to repay this mortgage early, either fully or partially. However, an Early Repayment Charge may apply if, during your initial period, you:

• Repay the entire mortgage, or
• Make a partial early repayment in excess of 10% of your original mortgage amount. In this case the early repayment charge will be applied to the amount by which the payment exceeds 10% of your original mortgage amount

Full details are contained in your Mortgage Offer document.

Consequences of Non-Compliance

Should you encounter difficulties in making your monthly payments, please contact Pepper Money straight away to explore possible solutions.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.