Two building societies have launched new mortgage deals, hoping to get a slice of the growing buy-to-let market.
The Mansfield Building Society has relaunched its range of buy-to-let mortgages for the intermediary market. Stuart Bryce, the lender’s business development manager, said that there remains a definite need for more mortgage options for buy-to-let landlords with a portfolio of 10 properties or less.
“With tax relief being reduced following the chancellor’s Budget this year and buy-to-let a source of supplementary retirement income for some, the sector needs lenders to offer alternative solutions.”
Products now available to brokers across England and Wales include a purchase only deal at a 2.65 per cent discounted rate for two years. This comes with a free basic valuation, an application fee of £199 and completion fee of £999.
Available for both purchase or remortgage is a 3.49 per cent fixed rate for two years, again with an application fee of £199 and completion fee £999.
Seperately, Coventry for Intermediaries has enhanced its five-year fixed residential and buy-to-let ranges with new products starting at 2.34 per cent for residential products, with a £999 arrangement fee.
Available from today (21 October), the range of five-year buy-to-let mortgages at 65 per cent loan-to-value offer the stability of a fixed rate, while the firm has also launched a Flexx for Term product, with rates starting from 1.75 per cent, with a £999 arrangement fee.
Darin Landon, Coventry’s distribution director, added: “As always all of our products are booking fee free and include a valuation of up to £670 for residential mortgages and £700 for buy-to-let.”
Meanwhile last week, Yorkshire Building Society’s intermediary-only lender Accord Buy to Let reduced the rate on selected mortgages by up to 0.4 per cent, with their commercial manager Chris Maggs stating: “there is still a healthy appetite for buy-to-let mortgages”.
While the buy-to-let sector saw a monthly lending decline in August, according to the Council of Mortgage Lenders, sales were still up compared to the same time last year.
Buy-to-let lending for house purchase has showed stronger year-on-year growth than home-owner loans for house purchase for most of the year, which in part is a market recovery response, as buy-to-let lending declined more than home-owner lending during the downturn, according to the industry body’s latest update.
peter.walker@ft.com
