Buy to let borrowing eases as lenders revamp dealsMake Text Bigger
Buy to let mortgage restrictions are relaxing as more lenders announce a return to the market.
Aldermore Bank is stretching its comfort zone to take on a little more risk by allowing landlords to have loans on three rather than two properties, subject to a total loan value of £1 million and rent cover of 125%.
The change takes effect straight away.
To take advantage of the deal, landlords must already own at least one buy to let property.
Charles Haresnape, Aldermore’s managing director in charge of home mortgages said: “The demand for buy-to-let mortgages is increasing. Brokers are asking if we will accept applications from the same applicant for more than two properties and we’re delighted to announce this enhancement to our lending criteria.”
Godiva Mortgages – the property investment arm of the Coventry Building Society – has launched a 5.59% capped rate tracker until March 31, 2013 via intermediaries.
The rate is set at Bank of England base rate plus 3.09%, making the current rate 3.59% variable.
Lending is at a maximum 60% loan-to-value (LTV) with a minimum mortgage of £25,000. Rent cover is set at 125%.
Fees are a £999 arrangement fee plus £250 booking fee, with a free valuation up to £700 and free legal’s for remortgages.
The package includes options for up to 5% capital repayments a year without penalty in the tracker period, overpayments, and payment holidays of up to three months a year.
Skipton Building Society is reopening its buy to let mortgage book with two-year fixed rate mortgages up to 60% LTV at 4.49% and three-year fixed rate mortgages up to 60% LTV at 5.49%.
Metro Bank has also signalled plans to launch buy-to-let loans later this year in the wake of announcements by Santander and Yorkshire Building Society about entering the market soon.
The bank has indicated to expect initial deals to be ‘conservative’.
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