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.”