TMA Mortgage Club and Precise have launched a three-year buy-to-let fixed rate with one of the largest portfolio limits on the market.
The 3.65 per cent product is available on up to 20 buy-to-let mortgages with a combined value of £5m with Precise Mortgages, but there is no limit on the borrower’s existing portfolio size.
It is being offered to individual and limited company landlords for purchase and remortgage at up to 75 per cent loan-to-value and with a maximum loan size of £500,000.
There is no limit on the number of director-dependant shareholders under the age of twenty-five for limited company applications, and an online calculator has been provided to generate an indicative portfolio assessment.
Richard Keen, head of key accounts at Precise Mortgages, said: “Following our successful launch into portfolio buy-to-let we are delighted to be working alongside TMA to further promote this proposition to the club’s members.
“The ‘heavy lifting’ that we will manage will enable brokers to transition smoothly into this exciting area. This is a further example of how we look to support our key distribution partners with innovation and market-leading products.”
The launch comes shortly after the introduction of more stringent underwriting standards by the Prudential Regulation Authority (PRA) on 30 September, which mean lenders have to evaluate the viability of all mortgages properties in a landlord’s portfolio when they apply for a new loan.
Several lenders have changed their approach to buy-to-let following the changes, with Mansfield allowing top-slicing and Keystone relaxing a number of its criteria.
Nick Green, broker at Coventry-based Alternative Estates and Financial Services, said: "It looks like you have the lenders who want this business, like these two, and the ones who don’t.
"It would be good if the lenders stripped out some of the data they don’t need for the portfolio side or at least had a standard industry sheet, as they want it keyed onto their own format template so there is a lot of data-gathering then re-keying. This could be used for each lender going forward."
Michelle Lawson, director at Hampshire-based Lawson Financial, added: “Precise are pretty good for innovation. They did a five-year fix with three-year penalties to get around the PRA rules. They are a specialist lender that can think outside the box.”
simon.allin@ft.com
