The mortgage range is available up to 90 per cent loan-to-value (LTV), with no higher lending charges (HLCs).
The fixed, discount and tracker products are available between 12 months to three years, with the two and three-year fixed rates available with no overhanging early repayment charges (ERCs). The rental cover is based on an initial rate interest only basis of 120 per cent, with no rental calculations on its house-to-let product. The mortgage range is available up to £500,000 per property, and can include portfolios of up to £1.5 million. It also allows overpayments and the option of a 30-year mortgage term.
Announcing the launch, Pete Thomson, sales director at Mortgages plc, said: “Mortgages plc has operated in the non-conforming buy-to-let market for many years but this is our first venture into mainstream buy-to-let lending, and as such is a milestone in our evolution as a specialist lender.
“The buy-to-let market has continued to hold up well and buy-to-let now accounts for 14 per cent of all mortgages handled by mortgage intermediaries, compared to just 6 per cent in 2001. We have designed our new range to hold broad appeal to both individual buy-to-let investors and landlords with portfolios. Initial feedback from mortgage intermediaries has been excellent and we anticipate this range proving to be very popular.”
However Harry Katz, principal at advisory firm Norwest Consultants, said borrowers and intermediaries needed to be aware of the different market conditions for the buy-to-let market. He said: “What with Stamp Duty, solicitors fees, mortgage charges, valuation fees, broker costs, not to mention interest rates, it’s a heavy punt on increasing capital values. What of the yield? If you are not getting around 6 per cent gross you are hardly going to break even.”
