Loughborough BS improves buy-to-let proposition

Loughborough building society has enhanced its buy-to-let mortgage range with maximum loan-to-values of 80 per cent.

The society’s BTL range now includes a two-year discounted rate and both three and five-year fixed rates, with products available for both purchase and remortgage throughout England and Wales.

The mortgage deals are available to individuals over the age of 25 and the mortgage must end by the age of 70. There is a minimum income requirement of £25,000.

Loughborough building society will lend to first-time landlords if the borrower has experience as a mortgagor, and all other criteria are met. Capital raising is accepted for property improvements and funding the deposit of a further property.

The society will also accept capital raising for the repayment of a government Help to Buy equity loan where the borrower wishes to apply for a let-to-buy mortgage.

The Loughborough’s interest coverage ratio is stressed on the product rate and must meet 130 per cent of the monthly mortgage payment based on interest-only. This is based on the net rent receivable after deductions of the landlords’ costs and tax liabilities associated with the property. Where the rental income is insufficient there is an option to include the applicant’s personal income in the calculations.

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