Mortgages  

Leeds launches ERC-free buy-to-let exclusives

Leeds launches ERC-free buy-to-let exclusives

Two exclusive buy-to-let (BTL) two-year fixed rates have been launched for Sesame’s appointed representatives and PMS’s mortgage club members via the Leeds Building Society.

The first product is fixed at 2.55 per cent until 31 August 2018, at 60 per cent loan-to-value (LTV), while the second deal is fixed at 2.99 per cent until 31 August 2018, at 70 per cent LTV.

Both have no early repayment charges (ERCs), include a free standard valuation (up to a value of £999), have no up-front booking fees and have a £1,499 arrangement fee.

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This is payable on completion, but can be added to the loan within the maximum LTV limits.

For remortgage customers, fees-assisted legal services are also available.

The maximum loan available is £500,000 and unlimited capital repayments are allowed.

As an additional facility at the end of the initial fixed-rate period, these products offer a 1 per cent discount off the current BTL variable rate of 5.99 per cent until 31 August 2021.

Rob McCoy, senior product manager at Sesame Bankhall Group, said that having no ERCs on a fixed rate was unusual, especially in the BTL market.

He said: “At a time when many landlords are uncertain about how the recent tax changes will impact them, as well as not knowing when the next interest rate change is likely to occur, the stability of a fixed rate, coupled with the flexibility this deal offers, makes these products an attractive proposition.”

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Mike Richards, director at Mortgage Concepts Associates, said it is always useful when lenders bring out reasonable rates with no early repayment charges.

He added: “I find there are a surprising number of people who are looking for a new mortgage, but one which they can pay off without any penalties.

“They may be expecting an inheritance, or selling another property, and want to repay all or some of the mortgage.”

peter.walker@ft.com