Saffron Building Society has introduced a new 5-year fixed product in a bid to strengthen its specialist lending range for landlords, while also improving its rates and reducing arrangement fees on its 2-year limited company buy-to-let (BTL) mortgage.
The lender is offering a 2-year fixed rate limited company BTL mortgage with a 2.97% fixed rate until February 2022, with a 75% LTV and early repayment charge (ERC) of 2% for 2 years.
With its 5-year fixed rate limited company BTL product, Saffron is offering a fixed rate of 3.47% up until January 2025, with a 75% LTV and rental cover of 125%. This product also features an ERC of 3% for 5 years.
Both products feature a minimum loan amount of £30,000 and maximum of £1m, a 1% arrangement fee and 10% per year overpayment fee.
The lender claimed that its limited company BTL range continues to be popular with landlords looking to maximise their returns against a backdrop of changes in tax liability introduced by the government.
Recent tax changes that some private landlords are better suited to running their investment properties through a limited company. As a result, the need for mortgages to accommodate this situation is set to increase further and has inspired Saffron to meet the need with wider and more competitive options.
Commenting, Saffron head mortgage sales Anita Arch said: “For those landlords wanting to make the return on their investment more tax efficient through a limited company our lower rate 2 year fixed mortgage, the introduction of a new 5 year fixed product and a 1 % decrease in arrangement fees is worth consideration.
"Intermediaries have attractive new options to offer their landlord clients.”
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