The lender has introduced a range of deals including a two-year discount tracker and a lifetime tracker. A specialist feature of the offering is that the borrower can let to family members. This was introduced following a survey which showed that 57 per cent of potential investors would like the ‘family-friendly’ option.
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Britannia will only lend to people with a maximum of three portfolios and the monthly rental income must be at least 125 per cent of the mortgage payment on an interest only basis at the lender’s standard variable rate. Applicants may not be a first-time residential buyer and a loan-to value-of 85 per cent or less is offered.
However Britannia has come under fire from one broker, who asked to remain anonymous, for moving into the BTL market. He said: “Britannia will take a good share so it will strengthen BTL, but the downside of the story is that smaller lenders will lose their market share as they don’t have a multi-million pound marketing budget.”
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Emma Taynton-Young, group PR manager at Britannia, said: “According to figures from the Council of Mortgage Lenders, 11 per cent of all mortgages sold are BTL. There is room in the market for large and smaller lenders.”
