Dudley Building Society has launched a new range of expat buy to let mortgage products, also available for purchase and remortgage. Available up to £500,000 and with a maximum loan to value (LTV) of 60%, the new range targets UK residents living abroad who face what is thought to be an ‘underserved’ space in the market, which also follows the recent 3% stamp duty tax surcharge on second homes and buy to lets.
The new range comes with a rate of 3.99% for buy to let and residential properties, which is a 1.5% discount on the lender’s standard variable rate (SVR) for buy to let mortgages and 1% below the residential SVR. The latest range is available for both employed and self-employed individuals.
These new products follow the launch of a revamped range of buy to let fixed rates earlier in September 2016, which saw the lender reduce products by 0.3% to a rate of 2.99%. Three and five year discounted rates were also released with early repayment charges removed on a selection of products.
The news follows a successful pilot after its launch into the buy to let market earlier in 2016, with rental calculations starting from 115% to 125% at 5.5% up to 80% LTV, subject to property valuation and postcode.
The lender announced it will place no cap on portfolios with other lenders and allows portfolios of their own products up to a value of £2 million. New Street Mortgages has also stated it will cater to let to buy customers in response to the rise of ‘accidental landlords’ renting out their existing residential properties. Changes on let to buy products include a new 3 year fixed rate with a 1-year early repayment charge.