As the popularity of buy to let investments grows so does the range of buy to let mortgage products available. This week has seen the introduction of two new product types; firstly, a product combination with full flexibility (No ERC) and no lender arrangement fees, and secondly, products for near prime landlords.
Flexible fixed buy to let mortgage products
With no similar products currently available, the introduction of products with both no early repayment charges (ERCs) and no lender arrangement fees will allow landlords to manage their portfolio with greater flexibility. This new range includes flexible fixed rate products. These have the benefit of a fixed rate – guaranteed payments each month in the preferential rate period – with the ability to repay some or all of the mortgage back at any time without paying a penalty.
New rates for LTV from 60% to 70%
Ranging from 3.99% for 60% LTV to 5.49% for 75% LTV, to be eligible for these buy to let mortgage products prospective landlords must have a provable income of £25,000 and can have no more than ten buy to let properties mortgaged.
Near prime buy to let mortgage products
A new range of ‘near prime’ buy to let mortgages has been developed and launched this week. These products are aimed at landlords with minimum earnings of £25,000 and a few relatively minor issues in their credit history.
Lenders will consider some bad credit for a buy-to-let mortgage
Landlords will be considered if they have one or two defaults up to a maximum of £5,000, one CCJ up to a maximum of £2,500 and missed one secure payment in the last 36 months. This product has a maximum LTV of 70% and the rental calculation is based on 130%.
With rates starting at 5.44% the product range encompasses a two year tracker and two, three or five year fixed products with lender fees from £1,995.
For an up-to-date view of the best deals check out our Best buy to let Mortgages page.