Those looking for a buy-let mortgage could benefit from the launch of a new product from Leeds Building Society (LBS).
According to The Mortgage Investor, when buying a property as an investment it is important to compare mortgage rates, as the size of the loan offered can vary on the projected income generated by letting.
The three-year mortgage from LBS offers a rate of 4.99 per cent with no higher lending charge and a flat fee of £999.
Additionally, potential landlords who may struggle with fees upfront could be helped by LBS which has launched a fee-free mortgage option with a rate of 5.49 per cent.
“All we require is proof of identity, a clean credit check and confirmation from a suitable letting agent that the rental income will cover 130 per cent of the interest-only mortgage payment,” said Kim Rebecchi, LBS’s general manager of sales.
Up to 80 per cent loan to value is available and capital repayments of ten per cent are allowed each year.
LBS has independent mutual status and merged with Mercantile Building Society on August 1st 2006.
© Adfero Ltd