- “State Bank of India set to enter the buy to let market”
A new buy to let mortgage lender is about to enter the market with broker-only deals.
The State Bank of India (SBI) has announced preparations to offer a 60% loan-to-value (LTV) tracker at 3.9%.
The first applications will be handled in branches and then opened to brokers and independent financial advisers.
The bank is accepting deals for loans between £50,000 and £1.5 million, and charges a £150 booking fee and £1,990 closing fee. No early redemption payments are charged.
SBI has 10 branches, mainly in and around London.
Leeds Building Society has launched a new five year 4.99% fixed rate buy to let mortgage at 70% LTV.
The closing fee is £1,299 and the lender allows borrowers make 10% capital repayments a year without penalty.
Borrowers are also being offered a free valuation and a legal service for remortgages in a bid to tempt them in.
Meanwhile, Kensington has pulled all 85% LTV buy to let mortgages; Skipton Building Society has raised the tracker rates from 3.24% to 3.59% and Aldermore Bank has stopped offering fixed rate deals.
Replacement deals are at more expensive interest rates or charge more fees.
Despite a flurry of activity among lenders, the market is still dominated by the big two – BM Solutions, owned by the Lloyds Banking Group, and The Mortgage Works (TMW), a Nationwide Building Society subsidiary
These landlord lenders have around a 90% share of the market.
The buy to let market has around 30 bank, building society and finance house lenders offering about 2,600 different loan deals at an average 23% loan-to-value.
Santander is the latest big name lender considering entering the property investment market. A spokesman has confirmed the bank is ‘considering’ buy to let loans to non-professional landlords.