The Bank is lowering the minimum rental income that a landlord of a buy-to-let property must meet each month to satisfy our lending criteria.
Alan Dring, head of sales, commenting on the changes said: "The buy-to-let market remains an important one and we hope these changes may make it easier for landlords with lower Loan to Values to take advantage of our buy-to-let proposition, which recently won 'Best Discounted Rate Buy to Let Mortgage Provider' at the Business Moneyfacts Awards this year. As ever, broker feedback has been a contributory factor to making this adjustment, which we believe now makes our buy-to-let proposition more attractive."
Standard Life Bank's buy-to-let rates are available from 4.24%, 6.5% APR (for mortgages up to 50% LTV) for a one year discount that makes no contributions to a client's costs. The Bank also considers lending to Professional Landlords and may provide an income-related 'affordability boost' for those whose rental earnings do not meet loan requirements.
Details of the new lending criteria are:
The new minimum rental yield requirement will be calculated using 130% of the monthly interest payment on the actual revert to rate for the applicable Loan to Value. The 'revert to' rate is the interest rate applicable after the incentive (such as fixed or discounted) period has passed. This means that the minimum rental amount required will now be lower for Loan to Value tiers of up to 50% and 50.01 - 65%.
The buy-to-let products have three different revert to rate tiers dependent upon the loan-to-value.
