The Stafford Building Society has introduced two new mortgage products for the buy to let sector.

The new Standard BTL and Holiday BTL mortgages both offer a discounted variable interest rate of 3.05% for an initial two-year term (Standard Variable Rate 7.55%, APRC 7.40%). 

These society says the products are designed to provide flexibility for landlord borrowers with residential investment properties or holiday lets.

Key features of both products include:

o Maximum loan-to-value of 70%;

o Discounted variable rate for two years;

o No minimum income required with terms available to age 85;

o Available across England and Wales;

o Minimum Loan £50,000;

o Airbnb and Vrbo income allowed;

o Occupancy restrictions considered.

Affordability is assessed using rental income, with seasonal variations considered for holiday lets and Airbnb. 

This is calculated using a stressed interest rate of 5.50%. 

The new products are suitable for landlords requiring Capital Raising, Purchasing or Remortgaging an existing portfolio.

A £100 application fee applies, along with a 5% arrangement fee, which is payable upon completion or can be added to the loan balance; provided the total borrowing does not exceed 70% LTV. 

Early repayment charges apply if more than 10% of the outstanding balance is repaid in any one year during the discounted period.