9:09 AM, 4th August 2011, About 12 years ago
Yorkshire Building Society is taking a tentative step in to buy to let lending with a limited range of mortgages for landlords.
Buy to let borrowing will be available through the building society’s subsidiary Accord Mortgages.
The plan is for a ‘suck it and see’ approach for the Yorkshire’s first foray in to the buy to let market by offering loans only in London and the South East.
Only a small flow of funds is available to start as the Yorkshire runs a live test on systems.
The Yorkshire inherited a buy to let lending book from recent merger with the troubled Chelsea Building Society.
Yorkshire’s head of buy to let, Jeremy Law, said: “As a financially strong independent mutual, our primary focus is, and always will be, the interests of our members. We will approach buy to let mortgages as we would with any other home loan, as a responsible and prudent lender.
“Initially, we plan to offer products for properties located in London and the South East to ensure a manageable entry into the market. However, we hope that we may be able to extend our geographical spread later in the year once we have our operation up and running.”
The Yorkshire has not released any product details yet.
Meanwhile other lenders continue to adjust their rates and lending criteria to make their offerings more attractive to landlords.
Aldermore Bank is inviting applications for buy to let mortgages from first-time property investors and increased the maximum age for borrowers to 85 years-old.
Charles Haresnape, managing director of residential mortgages at Aldermore, said: “We’ve listened carefully to feedback from brokers and expect these enhancements to our buy-to-let criteria to be well received.
“As we’re now happy to consider first time landlords, as well as increasing our maximum borrowers’ age to 85, these additional benefits make the product more flexible and helps to open up the buy-to-let market to new customers.”
The bank’s interest rates start at 4.68%.