Mortgages  

Mortgage Trust revamps BTL deals

West Midlands-based specialist buy-to-let lender Mortgage Trust has refreshed its range of two-, three- and five-year fixed-rate products at up to 80 per cent loan-to-value.

The new range includes a two-year fix at 65 per cent, priced at 2.79 per cent with a £995 product fee, or 2.95 per cent with a £495 product fee.

At 75 per cent LTV, two-year fixes are available at 3.05 per cent with a £995 product fee, and 3.45 per cent at 80 per cent LTV, with a 1 per cent product fee.

Article continues after advert

Meanwhile, three-year fixes come with a fixed rate of 3.30 per cent with a £995 product fee, while the fee-free option commands a rate of 3.50 per cent – both at 75 per cent LTV.

At 80 per cent LTV, fixes start from 3.70 per cent with a 1.50 per cent product fee, rising to 4.20 per cent fee-free.

The sole five-year deal at 75 per cent LTV is priced at 3.70 per cent with a £995 product fee.

At 80 per cent LTV, five-year fixes are available at 3.99 per cent with a 1.50 per cent product fee. The fee-free option comes with a fixed rate of 4.49 per cent.

In addition, Mortgage Trust is increasing its interest coverage ratio to 5.35 per cent, for single, self-contained property applications.

Reactions

Provider view

John Heron, Mortgage Trust’s director of mortgages, said; “Our refreshed product range is designed to give intermediaries as much variety as possible, while maintaining our competitive edge and high level of customer satisfaction.

“We already have market-leading low levels of arrears on our loan book but, in addition to maintaining the matrix approach to assessing affordability we already have in place, we are also moving to increase our minimum interest coverage ratio, building further sustainability into our loan book.”

Adviser view

Commenting on the two-year fix priced at 2.79 per cent, Simon Webster, managing director of Ashford, Kent-based Facts & Figures: Chartered Financial Planners, said: “It sounds like a competitive deal. Most landlords secure a buy-to-let mortgage at 75 per cent LTV so many could struggle to come up with an extra 10 per cent to add to their deposit to take advantage of the deal. It is most likely to suit remortgagers who already have equity in their property.”

Mr Webster also criticised the rise in stamp duty on buy-to-let properties announced in the Autumn Statement and due to come into force in April. He added: “I have half a dozen buy-to-let properties myself so I am not happy with the changes to stamp duty from a personal standpoint.

“I think that we will see a flurry of buy-to-let applications before the April deadline and a slowdown in applications thereafter.”

Charges

Charges range from fee-free to £995. Percentage-based fees range from 1 to 1.5 per cent.

Verdict

Discounting appears to be a motif in the mortgage marketplace, as lenders look to kick off a new year on the right foot by attracting customers with new competitive deals. Here the 80 per cent LTV deals in particular might the whet the appetite of aspiring landlords.