Mortgages PLC enters prime buy-to-let market

Mortgages PLC has entered the prime buy-to-let market with a range of products including prime buy-to-let and house-to-let options.

Key features of the new range from the UK lender and subsidiary of Merrill Lynch, include a choice of fixed, discounted and tracker rates for a period from 12 months to three years, with fixed rates from 5.35%.

Loans are available up to 90% LTV, and up to 500,000 per property and 1.5m on portfolios.

There are no higher lending charges, and two and three year fixed rate deals have no overhanging ERCs.

In addition there is a choice of arrangement charges, which can be added to the loan (along with fees), 120% rental cover based on initial rate interest only basis, no rental calculation on the house-to-let product and overpayments allowed.

Mortgage terms are up to 30 years.

Pete Thomson, sales director at Mortgages PLC, says: Mortgages PLC has operated in the sub-prime buy-to-let market for many years but this is our first venture into mainstream buy-to-let lending and as such is a milestone in our evolution as a specialist lender.

By combining our specialist underwriting approach with meeting the needs of prime borrowers we have the potential to make a major impact in this sector.

The buy-to-let market has continued to hold up well and buy to let now accounts for 14% of all mortgages handled by mortgage intermediaries, compared to just 6% in 2001.

We have designed our new range to hold broad appeal to both individual buy-to-let investors and landlords with portfolios. Initial feedback from intermediaries has been excellent and we anticipate this range proving to be very popular.