Kensington has lowered the rental cover and removed minimum income requirements for existing landlords for it’s buy-to-let range.
Rental coverage has been reduced to 125 per cent of 5.5 per cent and the lender introduced new options at 65 per cent loan-to-value, with rates from 3.39 per cent.
It also launched a limited distribution 80 per cent LTV product, available from 4.29 per cent through a group of networks and clubs, including Legal and General Mortgage Club, PMS Mortgage Club, Pink VIP, Simplybiz Mortgages, Intrinsic Group, Openwork and Tenetlime.
In addition to this overhaul of its buy-to-let range, Kensington has also made improvements to its residential mortgages, with the introduction of five-year fixed rates and new LTV bandings.
Steve Griffiths, head of sales and distribution, said that they feel that professional landlords who derive their total income from their property portfolio have limited options currently and the firm is keen increase its presence in this channel.
“With these latest changes we are stepping up our game in buy-to-let, providing new options for brokers and their landlord clients.”
Kensington’s revamp of their buy-to-let deals comes after Natwest Intermediary Solutions announced it will now consider buy-to-let mortgage applications where a ‘selective licensing scheme’ is in place where the property is situated.
A selective licensing scheme is where local authorities can choose to implement licensing for landlords in the area to improve the quality of private rented homes and reduce anti-social behaviour.