View more on these topics

SBoI to target buy-to-let sector with tracker loan

The State Bank of India is expanding its UK residential mortgage range an additional buy-to-let tracker product.

The SBoI has now confirmed that it will be targeting the buy-to-let sector and offering up to 70 per cent LTV on a repayment basis or 65 per cent on interest only. The banks is reportedly most interested in targeting the 60 per cent to 65 per cent LTV market.

The five-year tracker mortgage will be made available at 3.99 per cent plus base rate, potentially from next month.

The SBoI revealed in September last year that it was planning to launch a range of residential mortgages in the summer and reiterated its plans in February when it joined the Council of Mortgage Lenders. It is currently in negotiation with several brokerage firms for distribution including John Charcol.

John Charcol senior technical director Ray Boulger says it is a welcome addition to the mortgage market to have either a new lender coming in or an existing lender that is significantly increasing their appetite, especially when that is focused on intermediaries.

He says: “The fact that the State Bank of India is coming to market with a competitive rate and with sensible criteria is a great help.”

Recommended

/x/t/q/London_UK_Telephone_Red_Rain_480.jpg

OECD cuts UK growth forecast

The Organisation for Economic Co-operation & Development has cut its growth forecast for the UK, and expects the economy to shrink by 0.7 per cent during 2012. The OECD expects the UK to contract by 0.7 per cent in the third quarter before returning to growth of 0.2 per cent in the fourth quarter of […]

1

Mortgage fees jump over 70% in four years

The average mortgage fee has shot up 70.3 per cent in the past four years, according to research from Moneyfacts.co.uk. The data firm recorded an average fee of £899 a year before base rate fell to 0.5 per cent, in March 2009, to its current level of £1,514. The average two-year fixed fee is £1,595 […]

Three catalysts for European equities

By Rob Burnett, Manager of the Neptune European Opportunities Fund In recent weeks, the bear case for European equities has become more pronounced on the back of weaker-than-expected GDP data and deflation concerns. This softening in economic momentum has led some investors to question whether the ECB is behind the curve and indeed whether it […]

Newsletter

News and expert analysis straight to your inbox

Sign up