TSB has launched two new mortgage products for buy to let landlords looking to remortgage this week, which are available to those with a 60-75% loan to value (LTV).
The first out of the TSB buy to let remortgage selection comes in the form of a 2 year tracker, with rates now starting from 3.04% and 3.24% for a 2 year fixed rate mortgage. The bank’s adviser arm stated last week that it had witnessed 18,000 new customers and 8,000 brokers in its first year since returning under its own brand, while it equally launched 140 products by November 2015.
As the buy to let market remains hugely competitive, the lender is clearly preparing for the influx of remortgages before forthcoming stamp duty changes arrive, not to mention the prospect of a base rate rise in the near future. With the buy to let market remaining uncertain, the Government has recently launched the new right to buy scheme, as part of a pilot ahead of the national rollout this year.
The existing right to buy scheme allows social housing tenants the opportunity to purchase their home with a discount of £103,900 in London and £77,900 elsewhere. Whereas under the agreement, every home sold will additionally be replaced nationally with a new affordable home.
In line with TSB’s changes, borrowers are continuing to seek extra security when scouring the mortgage deals on offer, which many lenders have become increasingly aware of. For example, Newcastle Building Society has launched a 10 year mortgage at a fixed rate of 3.29% up to 80% LTV with no fees.
A product which is also early repayment charge free after 5 years, Newcastle BS is currently boasting the peace of mind that a 10 year fix supplies. The deal also allows borrowers to redeem their mortgage early if they so wish, providing additional flexibility.