While Friday’s Brexit announcement may have caused the pound to drop sharply and uncertainty to flood the property market, many investors will still consider buy-to-let a lucrative option.
If you are thinking of investing further into the property market, or would like to make changes to your existing portfolio, a new range of mortgage products may be exactly what you’re looking for.
It is believed that the London property market will prove resilient to the UK’s decision to leave the EU, as buyers take advantage of lower house prices. Could a buy-to-let investment in the capital be on the agenda for you this year?
Dudley Building Society, the intermediary-only mortgage lender, has recently released a range of competitively priced new buy-to-let products.
The society is rolling out new products in a series of announcements over the next month, after revealing strong annual results this month.
The new range includes two new discounted rates for purchase and remortgage, from 3.19% at 70% loan-to-value (LTV) – previously 3.99% – and 3.49% up to 75% LTV – previously 4.24%.
Landlords will also be offered two new three-year fixed rate products for purchase and remortgage, from 3.29% up to 70% LTV – previously 4.24% – and 3.59% up to 75% LTV – previously 4.49%.
Additionally, two new five-year fixed rate products are available for purchase and remortgage, from 3.59% up to 70% LTV and 3.89% for 75% LTV.
The range is offered with no upper age limits and manual underwriting.
Dudley Building Society also offers tiered buy-to-let rental calculations from 125%, depending on LTV.
The lender will approve loans worth between £25,000-£1m.
The Head of Credit at the building society, Jonathan Moore, comments on the new products: “We have introduced a very strong line up of products for the buy-to-let market that reflects our commitment to the sector. Landlords can choose between discounted rate products where the discount from the SVR [standard variable rate] lasts for the term of the mortgage, or three or five-year fixed rate options. Capital repayments of 10% of the advance amount can be made every year, along with interest-only and repayment options.
“The buy-to-let market is readjusting to the recent changes to tax relief and our society has responded with a comprehensive range of attractively priced products, where we have cut rates in some cases by up to 0.8%. We are fully committed to the intermediary market, and with this range, we are offering today’s landlord a particularly well-balanced range backed up by individual underwriting, which has become a hallmark of our successful distribution strategy.”
If you decide to invest further in the buy-to-let sector, remember to choose a comprehensive and competitive Landlord Property Insurance policy to protect your investment. Our policy is rated 5-star by Defaqto and includes 33 essential covers as standard.