Mansfield Building Society has launched a new 5-year fixed rate standard buy-to-let mortgage with a reduced rental income calculation (ICR).
Rental income for this product must be at least 125% of the monthly mortgage payment calculated at 5% (145% at 5% for higher rate taxpayers for house purchase).
Other product features include an initial rate fixed at 2.74% for 5-years, a £199 application fee. a £1,300 completion fee and a 3% early repayment charge for the first three years.
Andy Alvarez, head of mortgage sales at the Mansfield, said: “Whilst we operate in many niche buy-to-let areas, our new 5-year fixed rate product is aimed at landlords who have, or are looking at, a more straightforward investment relationship.
We think the new product will appeal because it comes with the certainty of fixed repayments over 5-years and the reduced ICR will enable landlords to perhaps borrow a little more than our rental income may ordinarily allow. This means that landlords may be able to consider new property opportunities or raise extra funds for light refurbishment work on an existing property.
Yet again, we’re pleased to be offering a flexible approach for brokers and their clients with a product that has a targeted appeal.”