Standard Life Bank has made its buy to let proposition even more attractive by: -
· cutting rates on its fixed rate mortgage range
· allowing landlords to add fees onto their loans
· changing the basis of its rental yield calculation for fixed rate products
Alan Dring, Head of Intermediary Development, said:
"A fixed rate mortgage - such as our competitive three year buy to let product - is a popular choice for many clients, as it gives landlords added security of knowing exactly how much their mortgage payments will be each month.
"Standard Life Bank is committed to providing introducers with a competitive buy to let offering for their clients and the add fees to loan option will help landlords spread the set-up costs of their buy to let property."
The Bank has reduced its minimum monthly rental yield requirement for fixed rate loans. The minimum rental yield is now 130% of the monthly interest payment calculated using the initial fixed rate. This was previously calculated using the revert to rate applicable to the customers Loan to Value. The new calculation basis is highlighted below:
Buy to Let 3-year fixed rate (without contribution to costs)
Initial Product
Pay Rate The overall cost for comparison is Rental Yield
Calculation Basis LTV%
4.92% 6.4% APR 130% @ 4.92% Up to 50%
5.15% 6.6% APR 130% @ 5.15% 50.01% - 65%
5.42% 6.9% APR 130% @ 5.42% 65.01% - 80%
Buy to Let 3-year fixed rate (with £300 contribution to costs)
Initial Product
Pay Rate The overall cost for comparison is Rental Yield
Calculation Basis LTV%
5.25% 6.4% APR 130% @ 5.25% Up to 50%
5.49% 6.6% APR 130% @ 5.49% 50.01% - 65%
5.75% 6.9% APR 130% @ 5.75% 65.01% - 80%
