Mansfield Building Society has launched a 5-year fixed rate buy-to-let product at 3.39% to 75% loan-to-value.
The mortgage is assessed at a pay rate of 3.39%, meaning lower rental yields are accepted in order to satisfy the society’s affordability assessment.
The society said the product would enable landlords to borrow more or consider higher value properties, particularly in areas where house price inflation is accelerating faster than rental income.
The mortgage comes with a £199 application fee and £1,300 completion fee.
Andy Alvarez, head of mortgage sales, said: “By reducing the stress rate on our five-year fixed rate product, we are able to support those landlords that have maintained their mortgage repayments throughout the pandemic but have seen a reduction in rental income by offering full or partial rent reductions to their tenants.
“We also wanted to make it easier for those wanting to take the first step into becoming a landlord and help those looking to grow their existing portfolio – landlords with up to 15 properties are also eligible for this product.
“We pride ourselves on our flexible approach to lending and providing products that help customers with unique or unusual circumstances that don’t meet mainstream lending criteria.
“This new proposition fits perfectly with our existing BTL range and helps to reinforce our commitment to the intermediary mortgage market and the invaluable advice given by mortgage brokers.
“We believe this product is likely to prove popular, so my advice to brokers is to get in touch if you have cases that have failed to meet the traditional calculations of 5% or 5.5%.”