Scarborough lowers rental income level
The move is partly motivated by feedback from brokers, who called for a change in the society’s requirements, but is also a continuing effort on the Scarborough’s part to establish itself in the BTL market.
Tony Burdin, head of group marketing at the Scarborough, said: “As a forward-thinking society, we are constantly looking for ways to develop and enhance our product range to keep it in line with, or in some cases ahead of, what competitors are offering.
“In doing this, the feedback of brokers is vital, as they are in the best position to temperature-test the needs of potential borrowers. They told us there was an appetite in the marketplace for us to adjust the rental calculations on our BTL range, and we have adjusted them accordingly.”
However, the lender’s holiday BTL rental calculation will remain at 150 per cent as, the lender claimed, rents in the sector are typically higher.
The Scarborough said the range is also made more accessible by borrowing calculations being based on the product rate, rather than calculating on a notional interest rate. Burdin added: “There will be further product developments and innovations to come in the near future as we aim to offer something for everyone and adapt to market trends. I would urge brokers to note us as a lender to watch over the next few months.”
Mark Alexander, managing director of The Money Centre, said: “ Scarborough is a very small player in the BTL market and reducing from 130 to 125 per cent isn’t going to make a massive splash. 125 per cent is pretty average and well behind GMAC-RFC, which does 100 per cent.”