Abbey launches into buy-to-let

12 December 2011 | By Tessa Norman

Abbey for Intermediaries has launched into the buy-to-let market with a range of products for non-professional landlords.

Its products are available for those with up to two buy-to-let properties who are aged between 21 and 70.

A minimum deposit of 25% is required and rental cover of 125% or above is needed, calculated on an interest-only basis.

Abbey is offering a two-year fix at 4.29% with a £1,495 fee available up to 60% LTV, and a two-year fix at 5.19% with a £1,495 fee available up to 75% LTV.

Both products are available for purchase and remortgage customers, and purchase customers will receive a free standard valuation and £250 cashback on completion.

Phil Cliff, director of retail assets at Abbey, says: “The buy-to-let market has seen strong growth throughout 2011 as demand for quality rented accommodation in the private sector continues to rise. Interest rates remain low and rental yields are at their highest for some time.

“We are delighted to be able to support the intermediary market with the launch of our buy-to-let offering for non-professional landlords. The range is designed to meet the needs of new or small volume landlords adding a first or second buy-to-let property, and we expect to see strong interest from intermediaries and their clients.”

The products are available exclusively through the intermediary market and require a minimum purchase price of £100,000.

Applicants must already have a residential or buy-to-let mortgage, and can only hold up to three secured loan commitments at the point of application, including a residential mortgage.

A maximum of two buy-to-let loans with Abbey is permitted and houses in multiple occupancy are not eligible.

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Readers' comments (20)

Dazed & Confused | 12 Dec 2011 10:21 am
I wish that I could get excited over this 'brave venture' but...it's not that exciting really is it Santander? Employed only, max 75% ltv not very exciting rates.

Lets just hope you are putting your toes in to 'test the temperature' and in 2012 you will put forward a sensible offering!
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Anonymous | 12 Dec 2011 11:15 am
This is brilliant news. Let's hope they bring out new competitive rates in the new year.
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Roger Travis | 12 Dec 2011 12:51 pm
looking at their website, looks like they'll only accept landlords with a maximum of 3 mortgaged btl's.
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Anonymous | 12 Dec 2011 1:17 pm
Let's hope their service improves because at the moment it is dreadful...
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Des Platt | 12 Dec 2011 1:51 pm
I agree with anonymous. I was really surprised to see them praised for their service by Jonathon Cornell recently. I only ever give them cases which could not be turned down and they even managed to do that with a gilt edged case of mine by getting another of their customers data on my client file.When I told them that there was no appeal to it; it was a question of them correcting the data and getting it agreed, they insisted I wrote in about it. They then phoned me back to say that my appeal had been successful; I might as well have talked to a wall as expain the difference between an appeal and a mistake by them for which there was no word of apology; just a hope that it wouldn't stop us using them in the future. Can't see this range setting the market alight either.
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Anonymous | 12 Dec 2011 2:03 pm
anony 1.17pm....yes absolutely.......its like pulling teeth at the mo......backlog of 2-3 days for documents to be assesed, 3-4 days for the underwriting queue!!!!!!!!!

very frustrating.............and as for the underwriting stance on commission.....well that one is an absolute corker!!!!!!!....lets take the lowest of three months in isolation regardless of what the YTD figure is and what could be proved on last years P60, with absolutely no discretion or common sense allowed!!!!!!!!!!!
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Anonymous | 12 Dec 2011 2:33 pm
not particulary great. Poor effort Abbey to be quite fair
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Bob Riach | 12 Dec 2011 2:37 pm
this does not look like a good offer to me and from what i read the service is still poor
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Bob Riach | 12 Dec 2011 3:19 pm
i havnt used the Abbey for over a year due to the poor service its a shame as i used to get a good service from A&L before the take over
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Anonymous | 12 Dec 2011 3:37 pm
Think alot of the attached comments are poor - AFI is producing my offers in 5 days - think it is about day 1 packaging. Suggest you get all the documents on day 1 and watch those offers fly out! Re Btl - we have seen nat west worsen their terms today and epilepsy pull out so great news that abbey has launched and remember it is a broker exclusive as not in their branches!!!! Well done abbey.
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