Axis Bank completes first BTL
The bank piloted its buy-to-let offering for three weeks in early April exclusively with Mortgages for Business prior to launching with Complete FS in early May.
Other partners including TBMC are scheduled to go live with the lender soon.
The deals were processed for a London landlord who was looking to raise finance for further investment.
Remortgages of £400,000 to 73% loan-to-value and £350,000 to 70% LTV were offered on two flats in the same block, both at a rate of 4.09% fixed for five years, with a fee of 1.5%.
David Whittaker, managing director at Mortgages for Business, said: “The product suited the client not only because it’s priced very competitively but fixing over five years will provide him with some protection against future rate rises.
“While rental income was not a limiting factor in this instance, a key feature of the product chosen is the favourable rent to income calculation of 125% at pay rate (4.09%) instead of the common average of 125% at 5% which means it works well for high value, low rent properties.”
Andrew Ferguson, head of buy-to-let at Axis Bank, said: “It’s great to get two transactions under our belts so quickly and confirms that our processes are working well.
“The pipeline is growing nicely and we look forward to completing more deals soon.”