Leeds Building Society has launched two discounted buy-to-let mortgages it claims are market-leading.
The new discount variable mortgages have initial pay rates at 1.14 per cent up to 60 per cent loan-to-value and 1.34 per cent up to 70 per cent loan-to-value. The society expects them to appeal to existing landlords who want to remortgage to a better deal while rates remain low.
Leeds Building Society director of product and distribution Jaedon Green says: “These shorter-term discount mortgages offer market-leading rates and a package of incentives.
“Widening our range of discounted residential mortgages was well-received so we’ve seen that there’s an appetite for variable rate deals – with the potential for lower monthly repayments than equivalent fixed rate mortgages – among borrowers who don’t expect interest rates to increase significantly in the near future.
“We may be in a rising rate environment, but the Bank of England has suggested any base rate increases will be small and gradual, in recognition of the fact that rates have been at historically low levels for the last decade.
“The past couple of years have seen a lot of change for landlords, with the introduction of new rules for portfolio landlords and wide-ranging tax changes, the impact of which is still being felt. For that reason we know landlords need to take a far more active role in managing their portfolio to maximise yield and making sure they have the best deal on their mortgage finances.”