Mansfield launches new 5 year fixed buy to let with reduced ICR
Mansfield Building Society has launched a new 5 year fixed rate standard buy to let mortgage with a reduced rental income calculation (ICR).
The new product offers fixed repayments over a 5 year period with an ICR that is lower than the Society’s typical requirements for standard buy to let. Rental income for this product must be at least 125% of the monthly mortgage payment calculated at 5% (145% at 5% for higher rate tax payers for house purchase).
Other product features include:
- Initial rate fixed at 2.74% for five years
- £199 application fee
- £1,300 completion fee
- 3% early repayment charge for the first 3 years
The Society’s Head of Mortgage Sales, Andy Alvarez, said he believed the new product would make good investment sense for landlords:
“Whilst we operate in many niche buy to let areas, our new 5 year fixed rate product is aimed at landlords who have, or are looking at, a more straightforward investment relationship.
We think the new product will appeal because it comes with the certainty of fixed repayments over 5 years and the reduced ICR will enable landlords to perhaps borrow a little more than our rental income may ordinarily allow. This means that landlords may be able to consider new property opportunities or raise extra funds for light refurbishment work on an existing property.
Yet again, we’re pleased to be offering a flexible approach for brokers and their clients with a product that has a targeted appeal.”
