Coventry Building Society has entered the buy-to-let market in a bid to net borrowers remortgaging from lenders already in the sector.
The lender said its entry into the market has been fuelled by customer demand. Fixed and base rate tracker mortgages have been launched and the lender plans to move more of its products into the market over time.
Martin Ritchley, chief executive of Coventry BS, said it was hoping to gain business from those remortgaging from existing buy-to-let products in addition to first time investors.
‘The buy-to-let market is gathering pace with total lending worth an estimated £10bn. This is a high profile sector of the market and feedback from customers indicates we have an opportunity to extend our product range into this growing area.
‘The demand for rental property is increasing and we see this as the perfect time to launch highly competitive buy-to-let products ‘ for those entering the market for the first time, or who wish to move from their existing lender to a more attractive deal. We have a new dedicated team in place to process these specialist applications with the speed and efficiency our customers have come to expect,’ he said.
The new product offering includes a fixed rate deal at 6.1% until 30 April 2007 and a base rate tracker standing at 5.50%. Maximum LTVs for both products are 80% and arrangement fees are £425 and £395 respectively.