TBMC launches buy-to-let exclusives with Mortgage Trust

Mortgage Introducer

April 6, 2017

TBMC has launched two fixed rate buy-to-let mortgages exclusively with Mortgage Trust.

The products are a 75% loan-to-value 2-year fix at 2.34% and a 5-year fix at 2.95%, both with a free valuation.

Jane Simpson, managing director at TBMC, said: “We are certainly seeing a preference for fixed rates at the moment and have seen a pronounced increase in demand for five-year fixed rates since the introduction of the PRA regulations and the changes to lenders’ rental calculations.

“In fact, 5-year fixed rates have been the top sellers at TBMC so far this year.”

Mortgage Trust has a 125% interest coverage ratio for basic tax payers with a current stress rate of 4.00% for the 5-year product and 5.50% for the 2-year product.

The ICR increases to 140% for higher and additional rate tax payers and there is a background calculation to make sure that the loan remains affordable once the fixed rate period has come to an end.

John Heron, managing director at Mortgage Trust, said: “We keep a keen eye on the product preferences from buy-to-let landlords and we are aware of the growing interest in longer term fixed rates.

“These rates are amongst the most competitive longer term rates that we have ever offered and provide landlords with the benefit of low and stable payments in an environment that may well remain volatile for an extended period given the Brexit timeline.”

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