Sainsbury’s Bank reduced rates across their buy-to-let and residential mortgage ranges today (9 July).
Paul Collins, head of mortgages product management at Sainsbury’s Bank, said the changes are part of the bank’s aim to be competitive for customers.
Features of the two-year fixed rate residential purchase range now include a 95 per cent loan-to-value (LTV) reduced to 3.19 per cent with £500 cashback and a 95 per cent LTV reduced to 3.39 per cent with £1,000 cash back, both with no product fee.
The bank’s five-year fixed rate buy-to-let remortgage range now includes a 75 per cent loan-to-value reduced to 2.56 per cent with a £995 product fee and £250 cashback.
Liz Syms, chief executive of Connect Mortgages, warned while the latest reductions are appealing the wider criteria may prove restrictive to customers.
She said: “The rate and fees are certainly market leading, but the product criteria is fairly mainstream.
"For example, the rental calculation is still based on a notional 5 per cent, even though the Prudential Regulation Authority (PRA) rules allow them to calculate affordability on the pay rate for five-year fixes.
“The product is also only available to non-portfolio landlords, that is those with less than four buy-to-let mortgaged properties.
"The competitiveness of the deal however will appeal to those who can meet the stricter criteria requirements.”