Santander Joins Buy to Let Mortgage FrenzyMake Text Bigger
Santander has joined the buy to let lending frenzy with a range of purchase and remortgage deals for landlords.
The property investment loans are available from IFAs and mortgage brokers under the Abbey for Intermediaries banner.
The launch pitches Santander among around 65 buy to let lenders offering loans across the UK.
Rates include two-year fixes at 4.29% at 60% loan to value and at 5.19% up to 75% loan to value. Santander charges a £1,495 fee on both – but also offers a free valuation and a £250 cash back on completion.
Santander is targeting new landlords with one or two letting properties rather than professional investors with multi-property portfolios.
To qualify, borrowers have to meet tight lending criteria, including:
- Aged between 21 and 70 years old
- Couples or partners must have at least one employed borrower who earns at least £25,000 a year gross before bonus or commission
- Borrowers must have a mortgage on their home and no more than three loans secured against their home, including the mortgage
Other criteria include:
- No more than two buy to let homes with Santander and no shared homes – Houses in multiple occupation (HMOs) are excluded
- Maximum loan-to-value is 75% and properties must be worth at least £100,000 – which makes the minimum loan £75,000
- Rent cover is 125% worked out on an interest only repayment
Phil Cliff, director of retail assets for Abbey for Intermediaries, said: “The buy to let market has seen strong growth throughout 2011 as demand for quality rented accommodation in the private sector continues to rise.
“Interest rates remain low and rental yields are at their highest level for some time. We are delighted to be able to support the intermediary market with the launch of our buy to let offering for non-professional landlords.
“The range is designed to meet the needs of new or small volume landlords adding a first or second buy to let investment property, and we expect to see strong interest from intermediaries and their clients.”
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