Hinckley launches offset BTL
The mortgage is a 2.65% discount off the society’s basic variable rate (currently 5.64%) for the whole term.
The initial charging rate is 2.99% and the mortgage is available at up to 75% loan-to-value. The offset facility reduces the capital balance when savings are deposited.
Valuation is free and there is a £250 arrangement fee and a £1,999 completion fee which can be added to the loan, as long as the LTV does not exceed 75% or the loan value exceed £300,000.
David Hollingworth, associate director at London & Country, said: “An offset account associated with the property is a great way for landlords to build funds for repairs or rental voids. It was very popular before the credit crunch so we’re delighted to have this product.”
Carolyn Thornley-Yates, Hinckley & Rugby’s head of intermediary sales, said: “We have long brought the benefits of offsetting to our residential customers.
“Now buy-to-let landlords can also enjoy the advantages of tax efficiency and less interest charges through this innovative mortgage.”