There is a number of new products and lending ratios emerging onto the Buy to Let market. Lending ratios created by lenders to show landlords that a “one size fits all” ratio doesn’t work in all cases and areas! For example:
If the total gross income of all applicants is less than £40,000 p/a, the lender’s new rental multiple is 125% and for applicants earning £40,000 p/a or more, the lender’s new rental is 140%. In all cases a reference rate of 5.5% will be applied, or 5% if it’s a fixed rate of five years or longer.
New Buy to let products without product fees are available for a loan to value of a maximum of 60% with a 0.1% interest rate deduction for 2 and 5 year rates. Another lender unveiled a new two-year fixed at 2.99% as well as a rate reduction on its two-year discount product to 2.59%
NB: All mortgage products/lending ratios are subject to change at any time, credit scoring and specific loan to value percentages.