Magellan Homeloans has launched into buy-to-let with a selection of products initially available through a limited selection of UK intermediaries.
The range includes tailored mortgages for individuals and limited companies – special purpose vehicle (SPV) and trading – with up to four applicants/shareholders.
The lender also has deals for joint landlords with different tax rates, while the lender is using income cover ratio testing from 125%.
Simon Read, managing director of Magellan Homeloans, said: “We believe that being a landlord in today’s housing market is complicated enough – getting a mortgage shouldn’t be.
“We’ve been developing our buy-to-let products over quite some time which has enabled us to really take account of the changing requirements and demands placed on landlords.
“It’s important to remember that what’s key for today’s landlord is how to maximise their profitability within the current tax and regulatory frameworks. We’ve designed our buy-to-let mortgages in ways that help them achieve this within a simplified process.
“We have built a dedicated buy-to-let team who average almost a decade’s worth of experience in this sector. We’re passionate about this market, and believe we have a range of mortgages designed for landlords, by landlords.
“We’re excited to be working with our selected intermediaries for the launch phase which will allow us to monitor these products and learn from their feedback. All of which will be used to support the plans to expand this range which are already in development.”
Magellan pledged to cater for investors’ increasing appetite for more complex assets, in addition to shared houses, studio flats, new build property, HMOs and multi-units, by considering property that has been or intends to be refurbished by a landlord.
Tenancies and tenant types including assured shorthold tenancies, common law tenancies, corporate, students, plus state-supported and housing association tenants will also be considered.
Magellan said it has worked hard to keep its application process simple, by reducing the need for unnecessary cashflow statements and business plans, as well as only requiring personal guarantees and floating charges in certain circumstances.
The lender has also developed a buy-to-let guarantor option, which it said is unique. This enables experienced or professional landlords to support first-time landlords such as spouses or dependants get into property investment and inexperienced landlords invest in alternative types of property, without the guarantor having the tax liability that comes with being a joint owner.
The Magellan buy-to-let product range offers 2 and 5-year fixed rates and trackers, the latter attracting no early repayment charges. Rates start from 2.69%.