State Bank of India will offer deals via brokers

State Bank of India plans to launch a range of buy-to-let and residential mortgages in the UK through brokers next year.

India’s largest bank launched into the UK mortgage market last week with a buy-to-let product.

It is only offering it direct through its UK branches, but a spokesman says it will start to distribute through brokers at a later date.

The lender, which also has Financial Services Authority permission to offer regulated mortgages, plans to launch residential products in 2012.

Speaking about its buy-to-let deal, a spokeswoman for SBI says: “Distribution will be via SBI’s UK branch network and we will add IFAs and brokers to our network in the second phase next year.

“SBI also has plans to launch a residential mortgage in 2012.”

She confirmed these will also distribute through brokers.

For its buy-to-let product it is offering a tracker rate up to 60% LTV at base rate plus 3.99%.

The term runs for between five and 25 years with a possible interest-only option, and is available on loans between £50,000 and £1.5m.

The product has a £150 booking fee and £1,990 arrangement fee and no early repayment charge. It says that depending on the credit quality of the borrower and size of the loan, the loan criteria and LTV will be flexible.

The Indian bank already offers savings accounts and investment products in the UK.

SBI, which is 59.41% owned by the Indian government, is the 50th largest bank in the world and is believed to be the first Indian bank to enter the UK mortgage market.