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Leeds BS ups max buy-to-let LTV, Hinckley and Rugby BS offers ERC-free RIO – round-up

  • 03/09/2019
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Leeds BS ups max buy-to-let LTV, Hinckley and Rugby BS offers ERC-free RIO – round-up
Leeds Building Society has increased its maximum loan to value (LTV) on buy-to-let mortgages up to 80 per cent.

The mutual is now offering 75 per cent and 80 per cent LTV buy-to-let products, in addition to deals at 60 per cent and 70 per cent LTV.

It said the move was in response to growing demand from purchasers acquiring new property, who tend to seek mortgages at higher LTVs than those remortgaging.

As a result, Leeds BS is launching a suite of two- and five-year fixed rate deals, available for purchase or remortgage, with a mix of incentives, including £300 cashback and no product fee.

Examples include:

  • 2.39 per cent two-year fix at up to 75 per cent LTV, with no product fee;
  • 3.14 per cent five-year fix at up to 75 per cent LTV, with no product fee;
  • 3.44 per cent two-year fix at up to 80 per cent LTV, with a £999 product fee.

Each of these three deals comes with a free standard valuation and fees assisted legal services.

Leeds Building Society director of products Matt Bartle said the lender was always seeking ways to support more borrowers, particularly those who are less well-served by the wider market.

“At the same time as increasing our maximum LTV, we’ve taken the opportunity to extend our range of buy-to-let deals, with a mixture of fee and incentive options to give landlords more choice,” he said.

“Cashback has proved popular with portfolio landlords acquiring a new property and looking for help to cover initial costs, such as marketing or other professional fees, in readiness for their first tenants to move in.

“Increasing our maximum LTV in this sector also demonstrates our confidence in the continued strong performance of the private rented sector, which remains important to the mix of tenures in a healthy housing market,” he added.


Hinckley and Rugby

Hinckley and Rugby is offering a discount for term retirement interest-only (RIO) mortgages that has no early repayment charges or maximum age, offering peace of mind for applicants that they will not have to revert to standard variable rate (SVR).

The mutual said it would be offering the product to the whole of the intermediary market after being pleased with the quality and quantity of applications during a trial with Legal & General Mortgage Club.

It is also available with an offset savings facility.

The discount for term product is 2.55 per cent off the society’s SVR, with the current charging rate being 3.59 per cent.

The lender said it was designed to provide certainty for later life borrowers thanks to never having to pay the SVR or switch products unless they want to and if their circumstances do change, they will not have to pay ERCs to exit the product.

It is available at up to 60 per cent LTV with a maximum loan of £500,000 and capital raising is also accepted.

Applicants must be at least 55 year-old, but there is no maximum age and valuation is free on properties worth up to £1m, an application fee of £199 stands and the £800 completion fee can be added to the loan.


All sustainable income considered

The mutual said all sustainable sources of income into retirement would be considered and the loan would be repaid from the sale proceeds of the property after a specified life event such as death or moving into long-term care.

Hinckley & Rugby head of sales and marketing Carolyn Thornley-Yates (pictured) said: “We stepped into the RIO market in May and have been so encouraged by the response that we now want to offer it to all intermediaries.”

Answers in Retirement Group commercial director Gary Little added: “Certainly, the advisers of AIR Mortgage Club and their clients will benefit from having access to this, especially in terms of the certainty it delivers to later life clients and the extra options it offers, such as the offset savings facility.

“It’s positive to see a lender pushing the envelope in this area and recognising strong demand from later life borrowers. I’m sure it will be met positively by our member firms.”


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