At the start of the year (and for many previous) the market had one mortgage lender offering 85% LTV Buy to Let Mortgages. Just six months in we now have Three!
Well, only two worth talking about today.
Kent Reliance is known to landlords as one of the most innovative Buy-To-Let lenders catering for First Time Landlords to Portfolio Landlords, from Multi-Unit Blocks to Limited Company BTL.
Has been joined by Kensington Mortgages known the Landlords for over 22 years as having flexible criteria and unique offerings not found at mainstream banks.
The Kensington Mortgages offering may spark some competition where Kent Reliance had none before. Entering with a 2 Year Fixed rate 0.40% lower and a reversion rate 1.63% lower.
If we take a £170k loan, as an illustration, this can result in lower mortgage payments of £64 per month. A saving no landlord will be eager to turn down when coupled with lower fees (1.5% compared to 2.5%) of £1,700.
The rental stress tests are not far apart, keeping with the above illustration with lower rental stress tests you would require £974 PCM rent for the Kensington product and an extra £116 for the KRBS Product – if purchasing in a personal name.
Northern landlords will be happy to find an alternative to the KRBS £100k minimum loan with Kensington offering at 85% LTV Minimum Valuation of £75k giving a £63,750 mortgage.
With recent regulatory changes to Buy-To-Let Taxation, Affordability and Market Trends the good news is both offer Limited Company Buy to Let at the same LTV and rates.
Those property investors looking to maximise returns by looking at Multi-Unit Blocks and Houses of Multiple Occupation (HMO) can find a home at both lenders.
Criteria changes if looking at longer term fixes and both have a variety of options such as Fee Free Deals, Discounted Rates & Rate Types. To obtain a, No Obligation Quotation from specialist mortgage advisers call Bespoke Finance on 01133203240 or email email@example.com
It’s incredible to see some competition in the 85% LTV Buy to Let space, at last. With 80% LTV rates starting at 2.99% and this product at 4.19% there is still some price to pay for an extra 5% loan.