There are 12 new deals on offer for buy-to-let investors with rates slashed by as much as 20 basis points on a variety of tracker and fixed-rate mortgages.
For a two-year tracker mortgage, customers will be offered between 3.29 per cent for 60 per cent loan-to-value and 4.49 per cent for 75 per cent LTV if they choose to pay a 2.5 per cent arrangement fee, or rates between 3.59 per cent and 4.29 per cent if they opt for a flat charge of £2450.
The two-year fixed-rate deal has no arrangement fee but higher rates, ranging between 4.89 per cent for 60 per cent LTV up to 5.89 per cent for 75 per cent LTV.
The range also includes a two-year tracker at 3.69 per cent for 65 per cent LTV, 4.09 per cent for a two-year tracker at 70 per cent LTV and 5.19 per cent for a two-year fixed-rate deal at 65 per cent LTV.
The trackers all charge between 2.79 per cent and 3.99 per cent above the base rate and will continue as long as the Bank of England base rate remains at 0.5 per cent.
Platform is also offering two different options for the range where buyers can again choose to pay £2450 or 2.5 per cent in arrangement fees. Rates include 3.79 per cent for 60 per cent LTV on a two-year fixed deal, 3.89 per cent for two-year tracker with 65 per cent LTV and 4.39 per cent on a 75 per cent LTV two-year tracker.
The bank is continuing to waive valuation fees for both purchase and remortgages, plus standard legal fees for remortgages. All products apply an £89 administrative fee.
The mutual said the move shows its commitment to the buy-to-let sector and it promises to follow the new deals with more lending throughout 2012.
Frank Cochran, managing director of West Midlands-based FSC Investment Services, said: “This move is proving quite typical of high street lenders at the moment. They are really trying to get a foothold in the buy-to-let market, and to do that they have to offer ultra-competitive deals like this. On their own terms these rates look very good, but I’ve got to question the wisdom of going into the buy-to-let market right now.
“The market hasn’t bottomed out yet and I certainly would probably be advising my clients to steer clear. There are other forms of investment which would be much less risky right now.
“When you take the tax implications into consideration, it makes it a complex area. I welcome the Co-op’s initiative but the buy-to-let market is not the right place to be at the moment.”
Article taken from http://www.ftadviser.com/2012/05/23/mortgages/mortgage-products/co-op-slashes-rates-for-buy-to-let-mortgages-OfwS6z5ruEqwuSJ8GYSDhP/article.html?refresh=true
