The stress rate for BTL lending across its fixed rate under five years stands at 7.75 per cent to 7.5 per cent. For longer-term products, the stress rate has gone down from 5.25 per cent to five per cent.
The lender has brought out a two-year fixed rate up to 80 per cent loan to value (LTV) with a £999 fee priced at 5.2 per cent, and its no-fee version is priced at 5.4 per cent.
Both have early repayment charges (ERCs) of two per cent in the first year then one per cent in the second, are eligible for purchase and remortgage, with no minimum income or maximum age criteria and 10 per cent overpayments per year.
Franco Di Pietro, head of intermediary mortgages at Newcastle Building Society – whose mortgage lending stayed stable in 2023 – said: “We’ve updated our range of two-year BTL products, with competitive rates complemented by the enhancements offered by our flexible lending criteria, direct access to our team of underwriters and support for each broker via their dedicated regional business development manager (BDM).
“At the same time, and as we look to support brokers and their clients as much as we can, we’re also pleased to be able to reduce stress rates on shorter and longer-term fixed rate products across our BTL range, which will provide a greater degree of flexibility.”
The Cambridge brings back top slicing
The Cambridge Building Society has reintroduced top slicing on standard BTL range up to 80 per cent LTV.
The mutual’s change allows experienced landlords with a shortfall in required lending to use a percentage of their earned income when the BTL property rental income is insufficient.
When a five-year fixed rate is chosen, the pay rate is used in the rental calculation, along with a rental coverage ratio of 140 per cent.
First-time landlords will also be considered, and the feature will also be applied to BTL expats who have a residential property but want to buy their first BTL or holiday property.
All countries and currencies can be considered up to 75 per cent LTV as long as it is not on the UK government financial sanctions list.
Kathy Bowes, The Cambridge’s intermediary manager, said: “We continue to listen to our intermediary partners and understand the difficulties that can occur in trying to find a suitable lender to submit a BTL case with. We hope that these criteria enhancements will help to offer more choice within the BTL marketplace”.
