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Mansfield BS launches family buy-to-let deal at 100% ICR

Mansfield Building Society has launched a new family buy-to-let mortgage that enables landlords to let out their property to a close family member with an Interest Coverage Ratio (ICR) as low as 100%.

The family buy-to-let product has been tailored for those landlords only wishing to charge close family members rent equal to their monthly mortgage payment.

The Society says its product is being introduced in response to identified trends which show a growing number of people buying property for relatives to live in. 


Landlords must have a minimum earned income of at least £20,000 with sufficient uncommitted income to support the ICR shortfall.

The mortgage, a three-year discounted variable rate, is available from 4.24% up to 75% loan-to-value with a £199 application fee and an £1,800 completion fee.

Mike Taylor, head of products at Mansfield Building Society, said: “By allowing uncommitted personal income to be taken into consideration, we believe that we’re providing a terrific option for landlords looking to purchase [or remortgage] a property to let out to parents, siblings or children.

“We feel it’s important that, where uncommitted personal income is available, landlords should have the opportunity to choose a property that is appropriate for their family circumstances and needs without having to charge excessive rental payments purely to meet strict ICR calculations. 

“We can see this type of lending appealing to those looking to give loved ones independence and security whilst retaining and accumulating wealth in the property over time.

“Not only does this new product show how the Society’s pragmatic underwriting can support niche markets, it is also offering increased choice, something that we believe fits well with our mutual ethos.”

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