Mortgages  

National Counties revamps BTL proposition

National Counties revamps BTL proposition

National Counties Building Society has cut interest rates on its three and five-year variable rate loans with immediate effect.

The changes come following a review of its buy-to-let (BTL) range and include a 2.5 per cent discount for three years – a new pay rate of 3.04 per cent, from 3.14 per cent - and a 2.2 per cent discount for five years – with a new pay rate of 3.34 per cent, from 3.54 per cent.

In addition to increasing its discounts, National Counties has added limited company lending to its proposition across BTL products.

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The society accepts limited companies with a maximum of eight directors, with a minimum loan amount of £75,000 and a product fee calculated at 1.5 per cent of the value of the loan.

During the first quarter, as the stamp duty increase on second homes loomed, many landlords started down the limited company route, although so far it has mostly been more specialist lenders that have accepted these vehicles.

In addition, procuration fees for all BTL products have recently been increased to 0.5 per cent, up from 0.35 per cent.

Cammy Amaira, head of intermediary sales at National Counties, said as changes in tax and legislation impact on the sector, products have been adapted to suit investors’ needs.

He said: “We have listened to what the brokers are telling us, and the improvements we have announced reflect these views.

“As the market for incorporated investors grows, we have added greater flexibility, and have rewarded brokers with higher procuration fees, which reflect the complexity of the casework they have to handle.”

Mike Richards, director of Mortgage Concepts Associates, said rate cuts and increased procuration fees from a local lender was a great move for brokers.

He added: “As far as offering limited company buy-to-lets, I think this is the way forward for all lenders, and I am only recommending this for all new purchases.”

peter.walker@ft.com