New market-leading buy-to-let rate launched
Leeds Building Society has announced the launch of a five-year fixed rate buy-to-let mortgage at a market-leading rate of 3.10%.
The deal comes with a £199 fee and a free valuation. Fees assisted legal services are also available for standard remortgages.
“This market-leading buy-to-let deal is available for purchase or remortgage up to 70% loan to value,” said Jaedon Green, Leeds Building Society’s director of product and distribution.
“Buy-to-let remortgage activity is highest at this LTV level and landlords appear to have been acting to minimise their costs and manage profitability as the Government’s tax changes began to affect this market.
“Five-year fixed rate products remain the choice for borrowers looking for longer-term security over their monthly repayments, making it easier to budget, which can be particularly useful when managing a privately rented property.”
The society has strengthened its buy-to-let mortgage underwriting team to smooth the application process, as well as amending and simplifying its criteria for this type of lending.
These include an income covering ratio (ICR) of 140%, reducing the stress test rate for remortgages with no additional borrowing to 5.00%, and removing the minimum income requirement.