The rental income calculation will now be linked to the Bank of England Base Rate. Applicants must now expect to receive 100% of the monthly mortgage payment in rent, calculated as if on an interest only basis at a notional rate of 5.75 per cent, a reduction of 0.25 per cent from the previous rate.
In addition, the 2 year Flexible Buy-to-Let Tracker rate has been increased, whilst the 5 Year Flexible Tracker, with no Early Repayment Charge, has been reduced. Rates for these products now start at 5.79% (BoE +1.29%) and 5.99% (BoE +1.49%) respectively.
All Flexible Fixed & Stepped Flexible Fixed rates increase by 0.1% and Flexible tracker rates have been increased slightly with the 2 and 3 year products now starting at 4.79% (BoE +0.24%). The Connections offset product, which comes with a Tracker rate for Life and no early repayment charge, is now available from 4.99% (BoE +0.49%). Lifetime Trackers, including the Lump Sum and Cashplus products, are now available at a rate of 5.79% (BoE +1.29%).
