Back to February 2017

New deals added to Leeds Buy to Let mortgages

Two new deals have been added to Leeds Building Society’s Buy to Let mortgage range.

The Society has launched two new five year fixed rate mortgages for remortgage only:

  • 75% with a £1,999 fee
  • 90% with a £999 fee

Both are available up to 70% LTV (loan to value) and come with a free valuation, as well as fees assisted legal services for standard remortgages.

“Our Buy to Let mortgage range includes different fee and incentive combinations, with LTVs of 60% and 70%,” said Jaedon Green, Leeds Building Society’s Director of Product and Distribution.

“These latest deals offer more choice for borrowers at the higher LTV end of this type of mortgage, where we tend to see stronger demand for remortgage deals.

“The market continues to benefit from buoyant demand for Buy to Let remortgage as landlords take action to minimise costs and manage profitability. This market has become even more active since the changes to Stamp Duty came into effect last March[i] and ahead of the impending changes to tax relief.

 “We amended and simplified our Buy to Let criteria from the start of this year and our new approach has been well-received by brokers.”

Leeds Building Society introduced new criteria on 1st January following changes to underwriting standards for Buy to Let by the Prudential Regulation Authority (PRA).

New criteria includes an income covering ratio (ICR) of 140%, reducing the stress test rate for remortgages with no additional borrowing to 5.00%, and removing the minimum income requirement.

[i]  Data from CML shows in the nine months since Stamp Duty Land Tax (SDLT) changes (April to December 2016), the purchase/remortgage balance averaged 30% to 70% respectively. By comparison, the average for the nine months prior (June 2015 to February 2016) was 41% to 59% (March has been excluded given the surge in purchases before the changes came into force).
On 1st April 2016 SDLT increased to 3% above existing rates purchases of additional residential properties in England, Wales and Northern Ireland by individuals who already owned at least one property. The higher rates also apply to most purchases of residential properties by companies.

 

Ends

Notes to Editors

Key Features

5 year fixed rate Buy to Let mortgage at 2.75% up to and including 30th April 2022:

  • 5 Year fixed rate Buy to Let mortgage at 75% up to and including 30th April 2022
  • Available up to 70% LTV
  • For remortgage only
  • Free standard valuation up to £999
  • Fees assisted legal services for standard remortgages
  • £1,999 product fee

5 year fixed rate Buy to Let mortgage at 2.90% up to and including 30th April 2022:

  • 5 Year fixed rate Buy to Let mortgage at 90% up to and including 30th April 2022
  • Available up to 70% LTV
  • For remortgage only
  • Free standard valuation up to £999
  • Fees assisted legal services for standard remortgages
  • £999 product fee

To discuss a new case with one of our mortgage development team, mortgage introducers should go to www.leedsintroducer.co.uk to find details of their nearest Business Developer contact.

Leeds Building Society won the awards for Best Building Society Savings Provider and Innovation in Personal Finance (Part and part mortgages) at the 2016 Moneyfacts Awards.

Leeds Building Society operates throughout the UK, Gibraltar and Ireland and has assets of £14.9bn (at 30th June 2016). The Society’s head office has been based in the centre of Leeds since 1886.