The society is offering a 2-year discount at 2.24%, a 3-year fix at 3.19% and a 5-year fix at 4.24%, all with a £199 application fee and £1,800 completion fee.
Mansfield Building Society has launched a 75% loan-to-value range of buy-to-let mortgages and tightened its stress testing criteria in response to the Prudential Regulation Authority’s new underwriting standards.
The society is offering a 2-year discount at 2.24%, a 3-year fix at 3.19% and a 5-year fix at 4.24%, all with a £199 application fee and £1,800 completion fee.
To comply with PRA measures Mansfield will now stress test against an interest rate of 5.5% with a rental coverage ratio of 145%.
However for fixed rates above five years the lender will require 130% of the monthly mortgage interest calculated at 5% - in line with the PRA’s exemption.
Steve Walton (pictured), national development manager, said: “Responding to the latest PRA requirements does not necessarily mean that lenders cannot continue to offer flexibility and choice.
“We wanted to make sure that we have the right criteria and products available for our broad buy to let customer base. By raising our maximum loan to value to 75%, brokers and their clients will benefit from increased product availability.
“For landlords wanting the security of our 5-year fixed rate, we’ve maintained our lower rental cover calculation, recognising the stability that long term fixed rates currently provide to property investors. We’re also pleased to be retaining our FCA regulated Family Buy to Let on the lower rental income requirement.
“We believe that brokers will welcome these changes and our common-sense and pragmatic approach to the new regime.”
