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MI enhances B2L criteria

Mortgage Intelligence has reduced the rental calculation on a three-year fixed rate buy-to-let product from Mortgage Express from 130% to 125%.

The MEX buy-to-let product has a fixed rate of 5.34% until June 30 2009. It features a 1% completion fee which can be added to the loan and an early repayment charge set at 5% until June 30 2009. For fixed rates of five years and above, rental calculation is now 120% of the monthly mortgage payment, down from 125%.

MI members can also access a semi-exclusive 4.84% three-year discount buy-to-let product with 1.41% discount off Bank of England base rate plus 1.75%. There is a 1.50% completion fee that can be added with the ERC set at 5% for three years.

Sally Laker, managing director of MI, says: “I am anticipating that these changes will be well received by brokers as fixed rates have spiralled recently.

“And lower ren-tal income calculations should make the products more accessible and even more appealing.”

Mark Collar, key account manager at MEX, says: “This reduction in our rental income requirements shows our commitment to the buy-to-let market and to providing products that meet the needs of our customers.”

John Burnard, principal at New Life Financial Planning, says: “There is a lot of competition across the buy-to-let sector and MI is in line with the rest of the market.

“It is bringing these rates down and changing criteria in an attempt to get a bigger share of the market.”

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