Kent Reliance, an arm of the OneSavings Bank Group, has launched a number of buy-to-let products for high net-worth borrowers as part of a wider revamp of its product range offerings.
The new range, has been specifically designed for landlords seeking to borrow £1m or more, or who have a OneSavings Bank Group exposure of more than £2m. The lender claims it was introduced in response to requests from its broker partners.
At 75 per cent loan-to-value (LTV), two-year and three-year fixes are priced at 3.99 per cent and 4.19 per cent with a 1.25 per cent product fee, respectively. The five-year fix is also available at 4.19 per cent with a 1.75 per cent product fee.
Some of the more notable loans for customers with a 20 per cent deposit include a two-year fix at 4.49 per cent with a 1.25 per cent product fee, and a five-year fix at 4.59 per cent with a 1.75 per cent product fee.
The lender has also re-introduced five-year fixed rates into its core mortgage range in response to consumer demand, according to the company.
Five-year fixes are available up to 90 per cent LTV on the residential range at 4.39 per cent with a 0.50 per cent product fee, at 85 per cent in the residential interest-only category at 4.09 per cent with a 1 per cent product fee, and on all buy-to-let offerings at 85 per cent LTV.
Provider view
Adrian Moloney, sales director at OneSavings Bank, said: “Kent Reliance is committed to offering a range of options based on our broker partners’ needs. We have reduced rates across the range while maintaining our 85 per cent LTV in our standard and specialist mortgages.
“We have also reduced our minimum loan to help our broker partners give their customers the most competitive product options available. These loans will continue to be reinforced by our flexible underwriting and assessed on a case-by-case basis, as this approach has resonated well with our intermediary partners.”
Adviser view
Mike Richards, director at London based Mortgage Concepts Associates Ltd, said: “It a good deal. The buy-to-let market was incredibly active in the first three months of the year in anticipation of a hike in stamp duty. The rise has put people off the market, but deals like this are likely to get people thinking about buying and letting out property again.
“The 1.75 per cent product fee is quite big, but landlords have got used to this level of charging.
“I have a relationship with Kent Reliance – they are very good. As specialist lenders, they look at slightly off-the-wall scenarios.
Charges
Aforementioned loans ranges from 0.5 per cent to 1.75 per cent.
Verdict
The buy-to-let market has been rocked by significant headwinds in the restrictions on the tax deductibility of interest for certain investors – the loss of wear and tear allowance, not least the hike in stamp duty on second home purchases. Here, the deals are certainly competitive. The five-year buy-to-let fixes are likely to appeal to savvy landlords who like to budget for the future. The introduction of competitive loans is a boon for the slowing marketplace.
