Leeds Building Society has added two new deals to its buy-to-let mortgage range in a bid to boost choice for high loan-to-value (LTV) borrowers.
The new five-year fixed rate mortgages for remortgage only offer rates of 2.75 per cent with a £1,999 fee and 2.90 per cent with a £999 fee.
Both are available up to 70 per cent LTV and come with a free valuation, as well as fees-assisted legal services for standard remortgages.
The new deals are expected to help buy-to-let landlords faced with higher stamp duty and upcoming cuts to tax relief.
Jaedon Green, Leeds’ director of product and distribution, said: “These latest deals offer more choice for borrowers at the higher LTV end of this type of mortgage, where we tend to see stronger demand for remortgage deals.
“The market continues to benefit from buoyant demand for buy-to-let remortgage as landlords take action to minimise costs and manage profitability. This market has become even more active since the changes to Stamp Duty came into effect last March and ahead of the impending changes to tax relief.
“We amended and simplified our buy-to-let criteria from the start of this year and our new approach has been well-received by brokers.”
Leeds introduced new criteria on 1 January, including an income covering ratio of 140 per cent, a 5 per cent stress test rate for remortgages with no additional borrowing and the removal of the minimum income requirement.
Mike Richards, director at London-based Mortgage Concepts Associates, commented: “The rates are very good and with the free valuation I think it makes it very, very attractive.
“With the stress rates at the moment it is unlikely you will get over 70 per cent in any case. For remortgaging, it works quite nicely.”
simon.allin@ft.com
