The deal, with a current rate of 5.89 per cent is discounted by 1.1 per cent for five years and is available up to 80 per cent LTV with no penalties at any time.
James Cotton, mortgage specialist at L&C, said: “This deal is aimed at buy-to-let borrowers looking to get a competitive rate without paying high set-up costs or broker fees. The lack of redemption penalties will also appeal to those looking to pay down their mortgage by making overpayments.”
He added: “A further benefit of the deal is that the 130 per cent rental cover required is calculated at the scheme rate rather than standard variable rate, giving buy-to-let investors more borrowing potential whether they be remortgaging or purchasing a new property.”
The product also has a lender fee of £295 and valuation refunded on completion.
Harry Katz, principal of Norwest Consultants, said: “This deal is extremely good compared to most buy-to-let products. Normally I would advise clients to remortgage their properties rather than take out a buy-to-let deal as they are often over-priced.
“If I went to a furniture store to buy a table it might cost me about £50. If I went out to buy a table that had the word ‘polished’ in front of it, it would probably cost me £150. That’s how these products work. Stick buy-to-let in front of it and suddenly the rates shoot up.”
