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About 2 weeks ago 36
Magellan Homeloans is offering a 90% of purchase price (subject to max 80% LTV) of undervalue transactions for Buy to Let borrowing. The launch of this new product range will initially be available through selected intermediaries rather than directly to the public.
As an example – if someone is buying a £300,000 (valued) house at £260,000 purchase price, they can get a £234,000 mortgage.
The £234,000 BTL loan offer represents 78%% LTV of the market value and also represents 90% loan to purchase price.
In real terms it means that this Buy to Let borrower may only have to put down a £26,000 deposit on a £300k valued property, which in ‘other’ real terms is just an 8.6% deposit on value, but they end up with 22% of equity.
Simon Read, Magellan Homeloans MD, said: “We believe that being a landlord in today’s housing market is complicated enough, getting a mortgage shouldn’t be. We’ve been developing our BTL products over quite some time which has enabled us to really take account of the changing requirements and demands placed on landlords.
“It’s important to remember that what’s key for today’s landlord is how to maximise their profitability within the current tax and regulatory frameworks. We’ve designed our BTL mortgages in ways that help them achieve this within a simplified process,”
Megellan’s range of lending criteria includes:
The range offers two and five-year fixed rates plus trackers, from 2.69%, with a bespoke ICR test starting at 125%.
If you require assistance with this or any type of property finance please ask us using the form below and we will be happy to help.