Improvements to its range include increased borrowing limits, improved underwriting and reduced rates.
The Bank will now offer up to 80 per cent loan-to-value (LTV) to non-professional applicants and 85 per cent LTV to applicants who qualify for the Bank’s Professional Mortgage.
An improved underwriting process will mean that applicants borrowing up to 70 per cent LTV no longer need to provide bank statements or confirmation of rental cover. Professional applicants borrowing between 70 per cent and 85 per cent LTV will only require confirmation of rental cover.
New interest rates have also been introduced by the Bank, including a base rate tracker at 0.5 per cent above base rate for two years. The full-range of new rates available on the Buy-to-Let Mortgage are:
Product
Initial Rate
Revert to Rate
Base rate tracker
0.5 per cent above base for two years (giving a current rate of 5.75 per cent)
1 per cent above base for the remaining period of the loan
2 year fixed rate
5.99 per cent
1 per cent above base (currently 6.25 per cent)
5 year fixed rate
5.79 per cent
1 per cent above base (currently 6.25 per cent)
An arrangement fee of £595, applicable to all of these rates, can be added to the value of the loan.
Richard Clark, head of product development and marketing at Scottish Widows Bank, commented: “The buy-to-let market has gone from strength to strength, highlighted by the latest statistics from the CML reporting strong performance in 2006. Despite the recent rate rises, the buy-to-let market shows no sign of slowing, spurred on by strong rental demand and rising rents.
“With these enhancements we have a competitive buy-to-let mortgage product to offer landlords, both those already in the market and those thinking about buying their first buy-to-let property.”
