03 July 2017
The buy to let market has recently been subject to unprecedented policy and regulatory change, which has directly affected landlords, intermediaries and lenders. These changes have led to an increase in buy to let remortgage activity, as many landlords seek to take advantage of the low rate environment in order to maintain profitability. Other landlords are looking at this as an opportunity to re-evaluate their property portfolio, including looking at properties in lower cost locations in order to reduce stamp duty costs. Recognising the challenge currently being faced, and in order to continue to support landlords, Leeds Building Society have updated their buy to let product range.
“We’re seeing more customers moving towards longer-term products, with five year deals the most popular,” said Jaedon Green, Leeds Building Society’s Director of Product and Distribution.
“Our five year tracker comes with no early repayment charges, so the borrower has no penalty charges if they decide to redeem their mortgage within the term, for example if they sell their property. This flexibility is useful to landlords, who may be reviewing their portfolios as the new buy to let tax legislation eases in. The strong set of products in our buy to let range is part of continuous efforts to improve our proposition in this sector, such as simplifying our criteria and strengthening our dedicated underwriting team.”
The range includes a 5 year tracker at 1.65% with no early repayment charges, so should your customer wish to sell their property during the term as they revaluate their portfolio, they have the flexibility to do so. Other changes are a reduction in the current 60% LTV products by 0.10%. The range includes a remortgage only 5 year fix at 2.39% with free valuation, fees assisted legal and a £999 product fee. To see the range in full, click here. If you wish to speak to your local BDM, their contact details can be found here.