The buy to let mortgage market is continuing to expand, with both Coventry for Intermediaries and Bath Building Society releasing new buy to let products.
Coventry for Intermediaries has launched new Flexx for Term buy to let mortgage products, at 50 per cent -75 per cent LTVs. They include rates at 1.85 per cent Flexx for Term, with 50 per cent LTV and no ERCS. A £1,999 product fee is also included. A second product offered is the 2.25 per cent Flexx for Term, at 50 per cent LTV. This comes with a £999 product fee, and no ERCs. Neither of the new Flexx for Term products will be subject to a 0.25 per cent rate increase on the 1 December.
Director of intermediaries, Kevin Purvey, commented on the new additions: ‘We’re delighted to launch new buy to let Flexx for Term mortgages. These products offer competitive rates, the ability to make unlimited overpayments and further borrowing at the same rate (subject to lending criteria). We’re also reducing rates for buy to let two and five-year fixed products from 70 per cent to 75 per cent LTV and on selected Residential products, so there are options for a wide range of clients. Plus, all of our products include a standard valuation of up to £670 for residential and £700 for buy-to-let.’
The new product by Bath Building Society is focused on buy to let mortgages for expats. The deal is available up to 65 per cent LTV, and is discounted for three years. It comes with a 1 per cent product fee.
The minimum and maximum loan amounts for the products are £100,000 and £500,000 respectively. The rental income from the property must be received in sterling and must also be sufficient to achieve an Interest Cover Ratio of 145 per cent at the Bath’s stressed interest rate. The mortgage must also be interest only.
The repayment of the mortgage is required to come from the sale of the property, which cannot be occupied by the borrower’s family. The mortgage payments must also be made from a UK bank account in sterling.
All applicants for the deal must be able to provide satisfactory evidence of identity, as well as of an overseas address and proof of income. They must also hold a UK bank account. Finally, applicants must have an existing UK mortgage.