AfI’s expands its BTL range and cuts rates

AfI, the subsidiary under which Santander issues the majority of its UK mortgages, has widened its offering in buy-to-let mortgages and cut the rates of existing products by 0.2 per cent.

Four new two-year products have been released, comprising one fixed-rate deal and three new tracker deals.

Miguel Sard, managing director of AfI, said: “We are pleased to enhance our buy-to-let range with the launch of our new tracker and fixed-rate deals for new purchases and remortgage, and rate reductions on our existing buy-to-let products. In addition, we have introduced percentage fees on some of our new products in direct response to feedback from our intermediary partners.”

The new products include a two-year fixed rate of 3.39 per cent with a 2.5 per cent fee. This is available on a loan-to-value basis up to 60 per cent.

There are also three two-year tracker deals. Two are also available at 60 per cent LTV. One offers a rate of 2.49 percentage points over the bank base rate and a 2.5 per cent fee while the other is plus 2.99 percentage points on the bank rate with a £1495 fee.

The third tracker is set at 3.59 per cent above the bank rate with a £1495 fee, and is available up to 75 per cent LTV. All the products are available to purchasers and remortgagers. Purchase customers are eligible for the Homebuyer Solution package, offering a free basic mortgage valuation and £250 cashback on completion.

AfI also confirmed it would reduce the rates on both its existing buy-to-let products by 0.20 of a percentage point to bring them in line with the new offerings.

Mr Sard said: “We continue to see strong rental demand in today’s housing market and we expect these intermediary exclusives to be very well received by intermediaries and their clients alike.”

David Whittaker, managing director of Mortgages for Business, said: “This is obviously an improvement on its initial offering but by no means market-leading rates. It is encouraging new products are being released but this kind of discount is not enough for us to rethink our existing recommendations for 2012.”

Mr Whittaker said brokers would probably look more readily at Accord Mortgages or Coventry Building Society for two-year discounted rates with both flat and percentage fees, and added that future rate cuts were likely in the market .

He said: “What you are seeing is lots of lenders with lots of products all looking for the same type of vanilla borrower. There are not enough to go around so we will see a lot of jockeying for position when they realise his and I would expect better rates to emerge on the products in the near future.”