For this week’s recommended Product of the Week, we would like to highlight a new product from Kent Reliance aimed at Limited Company buy to lets.
The product in question is a 2 year discounted variable rate, which comes with a rate of 3.59%. Although this may not be the cheapest rate on the market as far as buy to let mortgages are concerned, it does have other benefits that set it apart.
With a minimum loan size of £75,000 and a maximum of £3 million, this comes with no Early Repayment Charges (ERCs) for the length of the mortgage term and is available up to 65% loan to value (LTV).
However, the main benefit of this product is Kent Reliance’s rental calculation, which following the changes applied by the majority of lenders since the Mortgage Credit Directive (MCD), is certainly better value than many.
Whereas landlords were previously required to have a monthly rental income which would cover their mortgage payments by 125%, assuming a stressed interest rate of 5 to 5.5%, this has now changed to 145% across the high street.
However, Kent Reliance not only dropped the interest rate to 3.59%, but kept its stress test at 125% of monthly payments at 5%, making it one of the best rental calculations currently on the market.
This product is also available at 3.79% with no ERCs up to 75% LTV or with a rate of 4.19% at 80% LTV.
This is an extremely reasonable rate for a limited company buy to let mortgage, offering greater benefits than most, despite a slightly higher rate than some you may see on the market.
We are yet to witness a product similar to Kent Reliance’s 3.59% discounted variable rate and would certainly recommend it to our clients. Please do not hesitate to get in touch if you wish to receive more information.