The Cambridge will be offering top slicing across its range of BTL deals, aimed at landlords with up to three mortgaged properties whose rental income would fall short of the required interest coverage ratio (ICR), but have excess disposable income to top up the shortfalls.
The lender recently began offering an ICR of 125% on like-for-like BTL remortgages, a stress rate of 4.49% on the five-year BTL fixed deal, and removing upper age limits across the mortgage range.
The building society said that the move was designed to support landlords ‘in a climate which is becoming even more challenging following tax and affordability changes’.
Alongside the top slicing, the mutual has also launched a three-year fixed rate BTL product exclusive through Legal and General, with a rate of 2.49%, free legals and valuations for remortgages and available for loans of up to £750,000 with a 75% max loan to value (LTV).
Tracy Simpson (pictured), head of lending at the Cambridge, commented: “We’re always seeking to make things easier for our customers, and this is just one of the ways we’ve been able to show our commitment to supporting landlords.”
Danny Belton, head of lender relationships at Legal and General added: “It is great to work with lenders, such as the Cambridge, who listen to the concerns of the market, and improve their propositions to meet the needs of both brokers and customers.
Hanley Economic
Hanley Economic Building Society has launched a two-year discounted remortgage product targeting Help to Buy borrowers, with a minimum loan amount of £30,000 and a maximum of £500,000.
The deal has an initial two-year discounted pay rate of 1.94%, has no credit scoring, and comes with a £1,000 cashback as well as a free valuation.
An early repayment charge of 3% of the balance will apply if the mortgage is repaid in full within the first two years.
David Lownds, head of marketing and business development at Hanley Economic BS, commented: “This is a highly competitive product in a market which will see rising demand in the coming weeks and months.
“A wave of Help to Buy borrowers are currently evaluating their remortgage options and now is the perfect time for intermediaries to engage with such borrowers within their existing client bank.”
However, Lownds cautioned that not all should take up the offer: “Although switching from this scheme may not be the right decision for all Help to Buy borrowers, it’s encouraging that a small – but growing – number of options are becoming available to meet their remortgaging needs.”
