A new range of buy to let mortgages has been announced by Kensington with rates from 5.24% and a maximum of 85% LTV.
The new buy to let mortgages are suitable for all types of landlords from those just starting out with their first rental property, through to those looking to expand their portfolios.
There is a maximum 85% LTV requirement, however monthly rental income must exceed 120% of the monthly mortgage payment.
Kensington have relaxed their rental cover requirements slightly with this new product range – it was 125% – so as to help Landlords build their property portfolios.
Landlords can choose between a 2-year fixed rate mortgage for 5.24% up to 75% LTV, with a 2.50% fee, or opt for the flat fee of just £1,499 and pay a rate of 5.74%.
Those with smaller deposits meeting the 85% LTV requirements are offered a 2-year fixed rate mortgage at 5.99% with a 2.50% fee and at 80% LTV, customers can choose between a 2-year fixed rate at 5.69% with a 2.50% fee or go for a 5.99% rate with a flat fee of £1,499.
Landlords should not only try to find the best finance deals, but also ensure that they have sufficient landlords insurance cover to protect their investments and cover accidental damage to their properties.
Commenting on the strength of the rental market at the moment, Charles Morley, Head of Sales and Product Development at Kensington said:
“Increasing demand for private rental property is one of the few areas that commentators agree on at the moment and consensus is that there remains significant opportunity for investors in Buy to Let.”
“The problem for landlords is that, up until now, there have been few products that have really played to those areas of the market where there is demand.”
“But with our new Buy to Let range, Kensington have targeted those areas of demand – providing landlords with the ability to borrow at keener rates. And, because we look at each application as a customer and not just a number on a credit score, we have been able to lower our required rental cover to 120% by assessing their circumstances.”