Loughborough Building Society has launched a new buy-to-let range with two, three and five-year rates available up to 80% loan-to-value (LTV).
There is a two-year discount of 3.14% with a product fee of £699 and a two-year discount at 2.59% with a fee of £1499.
Meanwhile, both five-year fixed rates have a product fee of £999, with the rate of one being 3.09% and the other being 3.39%.
Loughborough’s mortgages, aimed at landlords for both purchase and remortgage throughout England and Wales, are available to individuals over the age of 25 with a maximum age of 70 at the end of the term. The minimum income requirement is £25,000.
The society will accept first-time landlords and capital raising for property improvements, funding the deposit of another property, and for the repayment of a Help to Buy equity loan where the borrower wishes to apply for a Let to Buy mortgage.
The interest coverage ratio is stressed on the product rate and must meet 130% of the monthly mortgage payment based on interest only.This is based on the net rent receivable after deductions of the landlords’ costs and tax liabilities associated with the property.
Where the rental income is insufficient there is an option to include the applicant’s personal income.