New buy to let mortgage rate

Mortgage Times, one of the countrys largest mortgage packagers has today announced the launch of a new fixed rate deal for buy to let customers. The new rate has been priced at 5.99% and is fixed for three years, thus breaking the important 6% barrier. The mortgage is available for loans up to 75% of the property value for those looking to buy a buy to let property, and up to 70% of the property value for those who wish to remortgage. The mortgage lender behind the scheme is Platform, who are a subsidiary of the Britannia Building Society, but all applications have to be placed via a mortgage broker who is registered with Mortgage Times.

In common with most buy to let mortgages, the decision to lend is not based on the income of the applicant, but on the income which is generated by the property. In this instance, Platform requires that the amount of rent received each month is at least 125% of the mortgage cost when calculated on an interest only basis. This means that for a mortgage of £100,000, the rent would have to be at least £624 per month for the application to be accepted.

Successful applications will be subject to a completion fee of 2% of the amount borrowed, although remortgage customers will have the option of a free remortgage legal service. As with all exclusive mortgage deals, the funds available are likely to be limited, and therefore it will be a case of first come, first served. Whilst applications from first time landlords are not accepted on this scheme, there are options on the market for those wishing to invest in property to let, subject to a minimum deposit of 25% of the property value.

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