Teachers Building Society has launched a new buy-to-let deal and lowered the rates and fees on much of its discounted variable mortgage product range for a ‘summer special’ promotion.
The products are available nationally to those in the teaching profession, and to people of any profession in Dorset where the building society is headquartered.
The new buy-to-let deal is a 2.99% two-year discounted variable rate available for both purchase and remortgage applications. The deal has an arrangement fee of £2,399.
Teachers has also lowered the rate on its existing buy-to-let product to 3.29%. Again, this is a two-year discounted variable rate deal but with a lower arrangement fee of £1,499.
The society has also launched a new arrangement fee-free two-year discounted variable rate deal at 2.15% for loans up to 60% LTV. In addition, the arrangement fee on its 1.99% discounted variable product for the same LTV has been reduced to £899. A £99 application fee applies to both deals.
The deals also include reduced rates and new fee-free options on the society’s discounted variable rate deals for 85% and 90% LTV.
James Bawa, chief executive at Teachers Building Society, said: “We’ve listened to our broker partners and are doing everything we can to remain competitive in this low-rate market. I’m confident that by launching a second buy-to-let deal and reducing the rates and fees across most of our product range we are giving brokers plenty to work with this season. Teachers traditionally use the summer break to move house or review their finances, so we’re geared up for a busy few weeks.”
We did, however, query whether an arrangement fee of £2,399 – albeit with a 2.99% rate – might not be prohibitive for teachers, who currently earn around £35,000 a year on average.
Bawa told us: “We strive to provide the most competitive rates and products we possibly can and feel that our buy-to-let fees are good value, particularly in comparison to the rest of the market (many lenders charge an arrangement fee that’s a % of the loan amount) and when our individual underwriting approach is considered.
“We certainly don’t aim to impose any barriers – we want to sell these products. We believe they offer choice to customers, as the fees can be added to the loan and customers can opt for a lower pay rate and higher fee or vice versa.
“Our mortgages are available not only to teachers but to people of all occupations in our local county of Dorset, and we are confident that these new deals stack up well in the market place.”
Martyn Smith, head of mortgage products at Legal & General Mortgage Club, said: “We have seen a number of lenders increase their rates over the last couple of weeks, so these new lower rates and fees from Teachers BS is a really positive message and should be well received by brokers and their customers.”
Sally Laker, MD at Mortgage Intelligence, said: “We are delighted to be working with Teachers Building Society to offer our members these exciting buy-to-let deals. With Teachers’ flexible underwriting approach we are confident that our advisers will take advantage of these competitive products.”
Teachers’ annual results showed that lending in 2012 was up year on year, with loans to first-time buyers rocketing by 115%.
Details of the new mortgage range:
www.teachersbs.co.uk/intermediary
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