Leeds Building Society has expanded its buy to let mortgage range, adding two new deals in a bid to appeal to property investors seeking high loan to value (LTV) products.
The additions to the Leeds range are two new five-year fixed rate mortgages for remortgage only offer rates of 2.75 per cent with a £1,999 fee and 2.90 per cent with a £999 fee. The new products are available up to 70 per cent LTV and come with a free valuation. There is also the offer of fees-assisted legal services for standard remortgages.
The new deals from the Leeds, boosting the supply of choice on the market, are intended to help buy to let landlords and property investors cope with issues such as stamp duty changes and reductions in mortgage tax relief.
Leeds’ director of product and distribution, Jaedon Green, said: ‘These latest deals offer more choice for borrowers at the higher LTV end of this type of mortgage, where we tend to see stronger demand for remortgage deals. The market continues to benefit from buoyant demand for buy-to-let remortgage as landlords take action to minimise costs and manage profitability. This market has become even more active since the changes to Stamp Duty came into effect last March and ahead of the impending changes to tax relief. We amended and simplified our buy-to-let criteria from the start of this year and our new approach has been well-received by brokers.’
The new criteria, introduced on the 1 January, comprised of an income covering ratio of 140 per cent and a 5 per cent stress test rate for remortgages with no additional borrowing. The minimum income requirement was also removed.
Director at London-based Mortgage Concepts Associates, Mike Richards, commented: ‘The rates are very good and with the free valuation I think it makes it very, very attractive. With the stress rates at the moment it is unlikely you will get over 70 per cent in any case. For remortgaging, it works quite nicely.’