The new range includes a three and five-year fixed rate as well as some two and three-year discounted rate products.
For house purchase and remortgage with additional borrowing the lenders has confirmed that rental income must now be at least 145% of monthly mortgage interest calculated at 5.5% with the exception of five-year fixed rates, which requires rental income to be at least 130% of the monthly mortgage interest calculated at 5%.
The mutual’s existing FCA regulated family buy-to-let product and its consumer buy-to-let mortgages remain available up to 70% LTV. Rental income requirements for these mortgages remain unchanged at a minimum 130% of the monthly mortgage interest calculated at 5%. The society will also use this rental income calculation in all instances where remortgages have no additional borrowing.
The lower rental calculation remains for five-year fixed rates and the lender’s family buy-to-let product.
National development manager, Steve Walton, said that meeting the new regulatory standards was the catalyst for the society to review and improve its overall buy-to-let proposition.
“Responding to the latest PRA requirements does not necessarily mean that lenders cannot continue to offer flexibility and choice. We wanted to make sure that we have the right criteria and products available for our broad buy to let customer base. By raising our maximum loan to value to 75%, brokers and their clients will benefit from increased product availability,” he said.
