Bank of Scotland Mortgages is launching a range of buy-to-let products with a low rental income calculation.
The buy-to-let products will continue to be self-financing, now based on an annual rental income of 125% of the annual interest only mortgage payments using Bank of Scotland base rate plus 0.50%.
This represents a 0.25% reduction on the current rate based on Bank of Scotland base rate of plus 0.75%.
The new products include a term tracker at 5.99%, with a £799 arrangement fee and no early repayment charge.
They also include a two-year tracker at 5.44%, with a £599 arrangement fee and an early repayment charge of 5%.
A one-year fixed rate is available at 5.54%, with a £599 arrangement fee and an early repayment charge of 5% also.
BoS is also offering a two-year fixed rates starting at 5.59%.
John Lloyd, head of sales and processing at Bank of Scotland Mortgages, says: “Our buy-to-let range is already exceptional, and includes a strong offering based on our vast experience in dealing with intermediaries and their buy-to-let clients.”