GE Money Home Lending’s entry into the buy-to-let market with a 90% LTV has been praised as a bullish move by brokers.
Available via GEMHL’s First National brand from November 15, the product has a three-year fixed rate of 5.39% with no overhang.
It is aimed at prime and near prime customers and will offer various LTV options according to the rental cover including 100% rental income with 85% LTV and 120% rental income with 90% LTV.
David Whittaker managing director of Mortgages for Business, says the move is interesting, particularly as it comes on the back of edeus’ move into the buy-to-let market with a 90% LTV product.
He says: “This is the second new-start lender in as many weeks that feels sufficiently bullish about the buy-to-let sector to charge straight in at 90%.
“By contrast, some of the biggest buy-to-let lenders including Paragon, Mortgage Express and BM Solutions that know and understand the market dynamics intimately have yet to break through the 85% barrier.”
Alan Cleary, managing director of edeus, says: “We have no issues about the 90% LTV on our buy-to-let product as we did a risk assessment on it. In terms of arrears, the mainstream market is a lot worse off than buy-to-let so we do not see any problems.”
Duncan Berry, director of first mortgage sales at GEMHL, says: “This move into the buy-to-let market for First National demonstrates our response to the phenomenal growth in this sector.
“Consumer demand re-mains strong in the sector as we continue to see an in-crease in rental demand together with a requirement for long-term investment opportunities.
“In addition to our core product range we will also be offering an exclusive to the Regulatory Alliance of Mortgage Packagers and GEMHL key partners Pink Home Loans, the Mortgage Times Group and Optoma.
He adds: “This proposition will combine 100% rental income with 90% LTV and provide our intermediaries with one of the best products in the market.”