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Offset buy-to-let mortgage launched

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Hinckley and Rugby Building Society has launched an offset buy-to-let mortgage product.

The mutual will offer the product at a rate of 2.99%, this is a 2.65% discount off the lender’s basic variable rate – currently 5.64%.

An offset buy-to-let mortgage allows a borrower to place their savings with a lender, which reduces the amount of interest charged on the loan.

Landlords with a 25% deposit can take advantage of the offer, although a £250 arrangement fee and a £1,999 completion fee both apply.

The mortgage is only available through the mortgage brokers London & Country.

David Hollingworth, associate director at London & Country, said this product would be useful for many landlords.

“An offset account associated with the property is a great way for landlords to build funds for repairs or rental voids,” he said.

“It was very popular before the credit crunch so we’re delighted to have this product.”

Carolyn Thornley-Yates, Hinckley & Rugby’s head of intermediary sales, said: “We have long brought the benefits of offsetting to our residential customers.

“Now buy-to-let landlords can also enjoy the advantages of tax efficiency and less interest charges through this innovative mortgage.”

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