AFI outlines buy-to-let proposition

Abbey for Intermediaries (AFI) has unveiled its buy-to-let offering.

The range of purchase and remortgage buy-to-let deals is available exclusively through the intermediary market and is aimed at non-professional landlords with up to two buy-to-let properties.

Borrowers must be aged between 21 and 70, and where there is more than one borrower, at least one must be employed, and earning over £25,000 basic p.a.

A minimum deposit of 25% is required and rental cover of 125% or above, calculated on an interest only basis.

The minimum purchase price is £100,000 and applicants must already have a residential or buy-to-let mortgage, and can only hold up to three secured loan commitments in total at application, including a residential mortgage.

A maximum of two buy-to-let loans with AFI is allowed, while houses in multiple occupancy (HMOs) are not eligible.

AFI is launching a two-year fix at 4.29% and a £1,495 fee, available up to 60% LTV, and a two-year fix at 5.19% with a £1,495 fee, available up to 75% LTV.

Both products are available to homebuyers and remortgagers, and homebuyers will benefit from a free standard mortgage valuation and £250 cashback on completion.

Phil Cliff, director of retail assets for Abbey for Intermediaries, said: “The buy-to-let market has seen strong growth throughout 2011 as demand for quality rented accommodation in the private sector continues to rise. Interest rates remain low and rental yields are at their highest level for some time.

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