Leeds unveils exclusive buy-to-let deals

Leeds unveils exclusive buy-to-let deals

LSL Group has launched two five-year buy-to-let exclusive deals with Leeds Building Society.

The products, with rates of 2.94 per cent and 3.2 per cent up to 70 per cent loan-to-value, are available exclusively to TMA members and appointed representatives of the First Complete and Pink networks.

Available for purchase and remortgage across England, Scotland and Wales, the deals come with £1,000 cashback, free standard valuation and fees-assisted legal service.

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The 2.94 per cent product has a £999 arrangement fee, but the 3.2 per cent deal has no arrangement fee.

Five-year fixed rates have been growing in popularity in recent months as borrowers have looked to head off an expected rise in interest rates.

Their expectations were borne out when the Bank of England increased the base rate from 0.25 per cent to 0.5 per cent on 2 November.

The Bank's move is expected to put further pressure on a buy-to-let market already struggling to cope with cuts to tax relief on mortgage interest and a greater regulatory burden.

Rob McCoy, senior product and business manager at TMA, said: "In the early part of 2018, we expect to see an increased amount of customer activity in the buy-to-let market.

"This is due to the volume of product maturities following the 2016 rush to avoid increased stamp duty, as well as landlords receiving HM Revenue & Customs letters following the first trading year under the new tax rules. 

"We are therefore delighted to be launching these exclusive products with Leeds Building Society, and have committed to offer a longer than normal rate period - up to 31 May - allowing customers with products that mature throughout the early part of 2018 to still benefit."

Kevin Hever, helper and adviser at Wolverhampton-based Cornerstone Financial, said: "They sound like good deals, especially with the cashback, which can be handy if there is any other legal work needed when moving a mortgage.

"People are definitely looking at longer-term fixed rates because of the changes in buy-to-let tax. It is one area of certainty people can get going into the future."