Mortgage network Connect for Intermediaries has added State Bank of India (SBI) to its panel of lenders.
The bank offers limited company and special purpose vehicle (SPV) buy-to-let mortgages with rates starting from 2.59 per cent for 60 per cent loan-to-values (LTVs) and from 2.89 per cent up to 75 per cent LTV.
Its remortgage rates on buy-to-let loans for individuals start from 2.09 per cent up to 60 per cent LTV.
Mortgages are available from £50,000 up to a maximum of £3m, and a number of products come with no arrangement fee.
The bank has a flexible, case-by-case underwriting approach and accepts applications from first-time landlords if they have an existing residential mortgage.
Connect appointed representatives can find out more about SBIs’ proposition at the Connect masterclass held on the 31 October.
Borrowing via a limited company has surged following the government’s decision to cut tax relief for buy-to-let landlords paying the higher rate of income tax to 20 per cent by 2020.
Limited companies are exempt from the change and also enjoy a range of other tax benefits.
Dinesh Gulati, head of retail credit for the State Bank of India, said: “The buy-to-let market has witnessed slew of changes, be it portfolio landlord rules or tax changes favouring SPVs.
“SBI has been on top of things to ensure that we are in line with market and better placed to suit the need of buy-to-let borrowers. We now accept exposure to 25 properties and our rates for SPVs are as low as 2.59 per cent.”
Liz Syms, chief executive of Connect for Intermediaries, commented: “The market has seen a rise in buy-to-let mortgage lending to companies. State Bank of India is in the top five lenders for SPV products and has the most competitive rates available in the UK at this time.
“It is therefore a real endorsement of Connect for Intermediaries that State Bank of India has decided to choose our network to partner exclusively with.”
simon.allin@ft.com
