Buy-to-letAug 15 2017

New Street overhauls mortgage deals

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New Street overhauls mortgage deals

Challenger lender New Street Mortgages has overhauled its buy-to-let and fixed rate mortgages.

For landlords it has increased the maximum age at the end of the buy-to-let mortgage term to 85 from 80.

New Street has introduced a reduced reversionary rate option - the rate the mortgage reverts to after the fixed period has ended - and can now offer a lower assessment rate on its 5-year fixed products of 4.50 per cent. 

On its five-year fixed rate range it has increased the interest rate by between 0.1 per cent and 0.4 per cent.

The mortgages now come with a free valuation option for both purchase and remortgage.

On its website, New Street stated it uses "analytics and systems to give intermediaries and customers a modern mortgage experience with instant, predictable decisions delivered online 24/7".

New Street Mortgages is part of the Northview Group of mortgage companies, and was launched with the intention of serving customers who have straightforward needs, but who aren’t covered by mainstream lenders. 

According to the lender's website, Northview manages over £10bn of mortgage assets, with a 20 year track record.

Daniel Bailey, mortgage broker from Middleton Finance, said that the age increase was welcome.

“It’s part of a trend. We’re gradually seeing more and more lenders upping the ages at which people can have buy to let mortgages. This reflects the interest from older people who are looking for an alternative to pensions,” he said.

The new deal came on the same day as figures showing that buy-to-let mortgage rates are falling.

According to new data from Mortgage Brain the cost of a two-year fixed BTL purchase product, for both 60 per cent and 70 per cent loan to value is now 4 per cent lower than it was in May 2017.