The product will have a pay rate of 3.39 per cent, which compares to the standard stress rate of 5 to 5.5 per cent.
This will allow landlords with lower rental yields to satisfy the mutual’s affordability assessment and gives them stable repayments. It will also allow landlords to borrow more and potentially buy higher value properties.
Andy Alvarez (pictured), head of mortgage sales at Mansfield Building Society, said: “By reducing the stress rate on our five-year fixed rate product, we are able to support those landlords who have maintained their mortgage repayments throughout the pandemic but have seen a reduction in rental income by offering full or partial rent reductions to their tenants.”
He added: “We also wanted to make it easier for those wanting to take the first step into becoming a landlord and help those looking to grow their existing portfolio – landlords with up to 15 properties are also eligible for this product.”
Alvarez said he expected the product to be popular and would appeal to new and existing landlords.