Mortgage Trust launches limited edition buy-to-let fix

Mortgage Trust launches limited edition buy-to-let fix

Mortgage Trust has launched a fixed rate buy-to-let product for individual landlords seeking finance for single, self-contained units.

The five-year fixed rate deal provides finance at 3.45 per cent, with a maximum loan size of £500,000 at 75 per cent loan-to-value (LTV) and £1m at 70 per cent LTV.

Available for a limited period only, the product includes a free mortgage valuation and an interest coverage ratio starting at 125 per cent at 4 per cent.

Mortgage Trust, which is part of The Paragon Group, offers buy-to-let mortgages designed for landlords with smaller portfolios.

John Heron, director of mortgages at Mortgage Trust, said: “Longer term fixed rates are becoming increasingly popular, providing landlords with greater cost certainty as they look to manage the introduction of the new tax changes. 

“With interest rates still close to historic lows, now is a good time for landlords to consider the potential advantages of locking in for a longer period.”

Adrian Kidd, IFA at Unleash Advice in Kent, said: “There are better five-year fixes out there. I am doing one with Godiva at the moment which is a five-year at 2.89 per cent, and I think that is up to 70 per cent.

“If they do not have a minimum income requirement, the Mortgage Trust deal becomes a bit more attractive. 

“For people who may be struggling to get the best deal because they can’t prove their income, that is probably OK but if you are an A-star borrower, that is not exciting at all.”