The Melton Building Society has announced a new fixed rate buy-to-let product, which has a lower interest coverage ratio than its current product range.
The new product is a five-year fix at 2.75 per cent, with an interest coverage ratio of 145 per cent of the mortgage payment, calculated on an interest only basis at 4 per cent, having been reduced from the standard rate of 5.5 per cent.
This product is aimed at business BTL customers and comes with a completion fee of £399 and no application fee.
The Melton Building Society head of sales and marketing Dan Atkinson says: “Landlords are increasingly looking for longer term fixed rates since they have reached an all-time low.”
“The combination of a lower ICR calculation and fixed rate on this product makes BTL from the Melton accessible to a wider range of landlords.”
This comes after the Melton Building Society partnered with L&G Mortgage Club earlier this month, with The Melton supplying access to shared ownership products to L&G mortgage club members until January 2022.