The introduction of a near-prime BTL product – a two-year fixed at 5.49 per cent – represents a major move by the lender into the non-conforming buy-to-let market.
The near-prime deal allows up to £2,000 of CCJs and one month’s arrears, although none in the last six months. There is an early repayment charge (ERC) of 3 per cent during the two years, unlimited defaults allowed and a procuration fee of 0.7 per cent.
The prime product is a three-year tracker at 0.99 per cent above the Bank of England Base Rate (BBR). The deal has no ERCs, offers a free valuation up to £525, and gives the intermediary a proc fee of 0.5 per cent. The product also has the option of free legals or £300 cashback for remortgagors.
Both mortgage products are available up to 85 per cent loan-to-value (LTV) and allow landlords a property portfolio of up to £10m.
James Taylor, mortgage product manager at West Bromwich, said: “Our move into the near-prime BTL sector is one of a number of enhancements we will make to our BTL proposition over the next couple of months.”
Richard Stokes, head of product development at the Mortgage Times Group, said: “ West Bromwich is fast growing into a significant BTL player, further testified to by these aggressively priced products.”
Mike Fry, director at Halton Insurance Service, said: “It may not be the lowest rate for a prime deal but it’s good and pushes all the right buttons, especially if you’re looking to remortgage. If we could only have both the cashback and free legals but we can’t have everything. In terms of the near-prime, it is a good deal and it is always good to see a building society thinking outside the box.”
