TBMC has launched two new exclusive buy-to-let fixed rates with Mortgage Trust.
There is a 2.34% two-year fixed rate and a 2.95% five-year fixed rate, both available up to 75% loan to value (LTV) and with a free valuation.
Jane Simpson, managing director at TBMC, said: “We are pleased to offer these new buy-to-let fixed rates with Mortgage Trust. We are certainly seeing a preference for fixed rates at the moment and have seen a pronounced increase in demand for five-year fixed rates since the introduction of the PRA regulations and the changes to lenders’ rental calculations. In fact, five-year fixed rates have been the top sellers at TBMC so far this year.
“Mortgage Trust has a 125% interest coverage ratio (ICR) for basic tax payers with a current stress rate of 4.00% for the 5-year product and 5.50% for the two-year product, so these products could be an excellent choice for landlord clients looking for competitive fixed rates during this period of economic uncertainty. The ICR increases to 140% for higher and additional rate tax payers and in both cases there is a background calculation to make sure that the loan remains affordable once the fixed rate period has come to an end.”
John Heron, managing director at Mortgage Trust, added: “We keep a keen eye on the product preferences from buy-to-let landlords and we are aware of the growing interest in longer term fixed rates. These rates are amongst the most competitive longer term rates that we have ever offered and provide landlords with the benefit of low and stable payments in an environment that may well remain volatile for an extended period given the Brexit timeline.”
