New Street Mortgages is to make changes to its buy-to-let offering on 28 March.
Its rental cover will start from 125% and the lender is introducing a £1 valuation fee across the board to coincide with the launch of the new £1 coin from the Royal Mint. On the current average UK property price of £218,255, this £1 valuation fee would save consumers £299, the lender claims.
Interest rates have also been reduced on buy-to-let by up to 0.7 percentage points, with the two-year fixed at 65% LTV at 1.74%.
New Street is also offering a new 5% managed rate for five-year fixed rates; one-year ‘ERC specials’ and Let to Buy products available on all products.
Rental calculations will now be tailored to individual circumstances, taking into account a customer’s tax rate, property location, property price and if ground rent and service charges are payable.
Intermediaries can work out the tailored rental calculation by using a new online calculator or referring to an infographic, which explains the variations.
Steve Griffiths (pictured), sales and distribution director, at the Northview Group, said: “Following the recent PRA changes in January which impacted buy-to-let mortgages, New Street has listened to a great deal of feedback from our intermediary partners on how we could improve our product offering to customers.
“We believe this extensive overhaul of our product range, offering bespoke lower rental calculations, price reductions of up to 0.7%, a new lower managed rate of 5% for five-year fixed rates and £1 for all valuations will see our customers benefit from this great package.”