Furness BS expands holiday let range and cuts BTL mortgage rates

The mutual has introduced two five-year fixes for holiday lets at 65 per cent and 75 per cent loan to value (LTV) with rates of 3.89 per cent and 4.29 per cent respectively.

Both products are available for purchase and remortgage, carry a fee of £1,250 which can be paid upfront or added to the loan, and allow interest only or repayment basis to be considered.

Personal use is allowed for up to 90 days per year.

Rent must be at least 125 per cent of the interest payable at the initial product pay rate and applicants’ total earned income should be at least £30,000.

The lender’s website notes that affordability will be assessed using net earned income plus 50 per cent of actual or anticipated gross rent minus all personal outgoings and the proposed new mortgage payment.

BTL changes

Meanwhile, Furness Building Society has also updated its consumer and unregulated buy-to-let mortgage range, including rate cuts to its two-year fixes at 65 per cent and 75 per cent LTV, with rates trimmed to 2.49 per cent and 2.99 per cent respectively.

Two new five-year fixes for unregulated buy to lets have also been introduced at 65 per cent and 75 per cent LTV and these are priced at 2.89 per cent and 3.39 per cent.

The BTL products carry a £1,495 product fee, which can be paid up front or added to the loan.

Alasdair McDonald, head of intermediaries for Furness, said the lender did not use a interest coverage ratio (ICR) calculation but instead considered an applicant’s overall financial situation along with its affordability model.

“Our experienced underwriters will take the time to look at cases individually and of course, they’ll always do their best to look for a way to say yes,” he added.