Explaining the appeal of its fresh options – one a brand new deal, the other a previously available mortgage with a new price cut – the building society’s Kim Rebecchi suggested one sort of landlord likely to be attracted by them.
She said that the “flat fee products will attract professional landlords, who may wish to move onto a highly competitive rate and fix their monthly commitments”.
The building society has given details of these mortgage options, which are part of its stock of buy to let products with fixed rates.
The first can be accessed by those after 80 per cent or lower Loan to Value (or LTV). It offers a fixed rate maintained over three years at 5.99 per cent.
Meanwhile, a previously available product offering maintained rates over two years has the same LTV requirement and the same 5.99 per cent rate. However, one new element of this second option is that its fees are now lower by some £300.
Of these two offerings, the first option has a completion fee of £1,100, the second one of £800.
Kim Rebecchi also explained the offerings in her own words, saying: “We believe it’s a very good time to lock into a low fixed rate and have reduced fees by £300 on the two-year deal at 5.99 per cent available up to 80 per cent LTV.
The society has also launched a market leading three-year fixed rate buy to let offer at 5.99 per cent, again available up to 80 per cent LTV.”
The building society’s announcement came at the same time that a Sheffield branch of William H Brown recommended landlords seek-out sound finance advice when it comes to mortgages in the buy to let area.
In a list of recommendations published on the Sheffield Star website, it also says that consideration should be given to renter type, for example uni goers, family groups and younger career people, and highlights the need for contents insurance as well as building insurance.
Karen Cunningham, from the Crystal Peaks branch of William H Brown in question commented: “There are in fact a number of important things to think about when deciding to let property and a number of responsibilities to consider once you become a landlord.”
One of the biggest benefits with choosing an insurance expert such as Rentguard is that landlords can request specific cover to ensure that whatever use they have for their buy to let property, they can have the right landlord insurance cover to fully protect their investment.