Leeds Building Society has launched an ‘Easy Start’ mortgage for landlords buying a new property, which is an updated version of its Welcome Mortgage and has an interest rate of 0% for the first three months.
Easy Start products include 2.72% up to 60% loan-to-value with a £999 fee, 2.82% up to 60% without a fee and up to 70% LTV there’s a 3.09% with a £999 fee and 3.24% without a fee. All are 5-year fixed rate deals which come with a free standard valuation.
Jaedon Green, Leeds Building Society’s director of product and distribution, said: “Our Welcome Mortgage won awards and industry praise so we looked at how we could tailor its benefits for buy-to-let borrowers.
“When they first buy a property they might need to decorate or carry out refurbishments before tenants can move in, so clearly there’d be no rent coming in over that time.
“Cash freed up at the start of the mortgage could go towards a higher-quality fit-out to help to secure a better rental return.
“If the landlord chooses to borrow on an interest only basis, Easy Start means there would be no repayments in the first three months.
“This innovation is the latest example of how we’ve used our insight and expertise in the buy-to-let market to understand and respond to customer need.”