The Mansfield Building Society has unveiled a new five-year fixed rate standard buy-to-let mortgage with a reduced rental income calculation (ICR).
The new product offers fixed repayments over a five-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).
It comes with an initial rate fixed at 2.74% for five years, with a £199 application fee and £1,300 completion fee.
There is a 3% early repayment charge for the first three years.
Andy Alvarez, the Mansfield’s head of mortgage sales, said: “Whilst we operate in many niche buy-to-let areas, our new five-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 five-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.”