Axis Bank UK will launch into the buy-to-let market on 27 April, it has confirmed.
The lender, one of the biggest private banks in India, will target experienced landlords. A standard and a specialist range will be available, covering individual borrowers, limited companies, HMOs and ex-pat applicants.
Rates will start from 3.79 per cent with a fee of 1.5 per cent for a two-year fixed rate and 4.59 per cent for a five-year fixed rate with a 2 per cent fee.
Axis Bank UK head of buy-to-let Andrew Ferguson says: “In order to control distribution we have opted for intermediary-only access and are delighted to confirm that we will be working with Complete FS, Mortgages for Business and TBMC as our initial partners.
“Prior to full launch, we are running a small pilot programme with Mortgages for Business to ensure we deliver a positive broker experience through our new online submission platform. The pilot will run from 7 April.”
Mortgage Strategy first revealed in April 2014 that Axis Bank was eyeing a launch into the UK’s buy-to-let sector.
In the past year, the Post Office, State Bank of India, Fleet Mortgages and Foundation Home Loans have entered the buy-to-let sector.
The market is likely to become even more attractive for lenders after the introduction of Chancellor George Osborne’s pension reforms this week. The reforms mean that anyone over the age of 55 will be able to release all of their pension pot as cash and be taxed at the marginal rate.
Some brokers have predicted that many over-55s will choose to use this cash to invest in the buy-to-let sector.