Mortgage Trust is back in buy to let after three year gap

Mortgage Trust is lending to buy to let landlords again – after a three year break from the market.

The firm, a subsidiary of property investment specialist Paragon Mortgages, stopped lending in February 2008.

New mortgage packages include a two-year tracker at 3.99% and a two-year fixed deal at 4.99%, both up to 75% loan to value, for remortgages only.

Both loans have a fixed fee of £999 and free valuations and legal fees.

John Heron, a Mortgage Trust director, said: “Mortgage Trust is extremely well regarded within the intermediary community and has an excellent reputation for catering for simple buy-to-let cases.

“By utilising technology to a much greater extent in the application process via mton-line.co.uk, we will be giving an initial lending decision in minutes. This will deliver a quicker and more efficient process for intermediaries and their landlords.”

Rent cover is at 125% with interest charged at 5%.

Mortgage Trust mortgages are only available via brokers for single self-contained properties and are subject to fast-track agreement in principle.

OTHER NEW DEALS

Northern Rock has sliced up to 0.4% off two and three-year fixed rate buy-to-let mortgages. The lender is offering a 70% loan-to-value two-year fixed rate and a three-year fixed rate product up to 60% loan-to-value both at a rate of 5.89%.  Other new products include 60% loan-to-value fixed rates starting from 4.09% for two years and 5.79% for five years. Both come with a 3.5% arrangement fee.  Borrowers looking for trackers can choose a base rate plus 2.79% mortgage with a 3.5% fee.

Kensington has introduced a new set of buy to let loans available up to 70% LTV, with rates starting from 4.79% for a two-year fix and 5.29% for a three-year fix.

Loughborough Building Society has launched a new 70% loan-to-value buy to let deal at 4.49% up to maximum borrowing of £175,000. The completion fee is £799.