The Cumbria-based Building Society has launched two new high LTV buy-to-let mortgage products for brokers.
Furness Building Society has announced the launch of two 80% Loan-to-Value (LTV) buy-to-let mortgage products, available across England, Scotland and Wales.
Both products are fixed, with a two year option at 2.89% or a five year option at 3.14%. The arrangement fee has been set at £995 and the valuation fee removed for remortgage applicants – making the products very competitive.
There is a stipulation for an EPC rating of C for properties using these products. This is in acknowledgement of the Government’s forthcoming legal requirement for landlords as well as the Society’s commitment to supporting the environment.
As with all buy-to-let products from Furness, applications for the new high LTV will be assessed based on an applicant’s overall financial situation – not by simply using an ICR calculation. Earned income together with mortgage and other credit commitments will be reviewed by an underwriter. This enables Furness to consider a wider range of clients that present good quality, low risk lending.
Alasdair McDonald, Head of Intermediaries at Furness Building Society, commented: “With the demand for homes to buy higher than the amount of stock available, the appetite for homes to rent is surging as a by-product. Fierce competition is pushing up rent values and we know landlords are looking to expand their portfolios to capitalise on this.
Our new higher LTV product will enable brokers to help even more of their landlord clients meet their investment aspirations throughout the year. Plus, our usual human-led, flexible approach to underwriting and affordability means we can quickly consider a client’s overall financial proposition as opposed to being held back by ICR requirements.
Buy-to-Let boomed in 2021 with borrowing up 83% on 2020* and momentum is set to increase in 2022. We’re here to help our brokers’ clients get the finance they need to make hay while the sun shines on the rental sector in 2022.”
