Buy-to-letJan 4 2017

Mansfield launches buy-to-let range

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Mansfield launches buy-to-let range

Mansfield Building Society has launched a buy-to-let range and updated its rental income criteria in response to the Prudential Regulation Authority’s (PRA) new rules.

The new range of 75 per cent loan-to-value products includes three and five-year fixed rates as well as two and three-year discounted rates.

Meanwhile for house purchase and remortgage with additional borrowing, rental income must now be at least 145 per cent of monthly mortgage interest calculated at 5.5 per cent.

The exception is the five-year fixed rate product, which requires rental income to be at least 130 per cent of the monthly mortgage interest calculated at 5 per cent.

Steve Wilton, the Mansfield’s national development manager, said: “Responding to the latest PRA requirements does not necessarily mean that lenders cannot continue to offer flexibility and choice.

“We wanted to make sure that we have the right criteria and products available for our broad buy-to-let customer base.

“By raising our maximum loan to value to 75 per cent, brokers and their clients will benefit from increased product availability.”

In September the PRA announced tough new rules for buy-to-let borrowers amid concerns about lenders’ growth plans, and the fact they might relax their underwriting standards to meet them.

Among the rules was a minimum affordability stress test rate for borrowers - the outside amount they would need to be able to pay - of 5.5 per cent for the first five years of the mortgage.

The society’s existing FCA-regulated Family Buy-to-let product and its Consumer Buy-to-let mortgages remain available up to 70 per cent LTV and rental income requirements for these mortgages remain unchanged at a minimum 130 per cent of the monthly mortgage interest calculated at 5 per cent.

damian.fantato@ft.com