22:49 PM, 7th February 2011, About 13 years ago
New lenders are eyeing buy-to-let as others are shaping up their deals to give landlords a wider choice of rates and products.
Yorkshire Building Society has indicated a move in to the market before July on the back of the merger with Chelsea Building Society, which had a large property investment lending book.
Last year, Santander’s Abbey for Intermediaries confirmed the bank is seriously looking at lending to landlords this year.
Kensington Mortgages has upped buy to let loan to value (LTV) limits from 75% to 85% and reduced rental cover on mortgage repayments to 120%.
Relaxing the criteria opens borrowing for landlords with smaller deposits and more competitive rents.
Kensington still charges a few – but borrowers can select a flat rate or percentage of the loan.
Paragon Mortgages revamped mortgages for landlords with two-year trackers starting at a 3.30% rate and a three-year tracker at 3.60%. Fixed rate deals over two years are also offered from 4.25%.
Paragon’s LTV is less generous than Kensington’s – rising to 75% from 60%.
Arrangement fees are 2% of the advance up to a maximum £2,000.
Meanwhile, The Mortgage Works – the Nationwide Building Society buy to let specialist subsidiary – has withdrawn several fixed and tracker rate mortgages.
Aldermore Bank and Co-operative Bank buy to let arm Platform Mortgages have also beefed up their landlord lending range this month.
Both offer a range of fixed and tracker mortgages and remortgages up to 75% LTV.
To find out more about buy to let mortgages and remortgages you can perform a customised search of available deals that suit your personal financial circumstances here.