Property investment has become instantly more affordable as a specialist lender is offering
buy to let mortgages with low cash deposits and rent cover.
Landlords can apply for mortgages from Kensington while putting up a 15% deposit and a
property with rent cover of 120%.
This return to the old 85% loan-to-value buy to let mortgage is the first time property
investment deposits have been so low since the housing bubble burst in 2007.
Until now, the best deals have been with Nationwide Building Society subsidiary The
Mortgage Works and Clydesdale Bank – both offering 80% loan-to-value.
The best interest rates still go with the highest deposits as a whole group of lenders like
Birmingham Midshires, Paragon Mortgages and Platform Home Loans (part of the Co-op
Bank) only lend up to 75% loan to value.
The Kensington range lets landlords pick a two-year fixed rate mortgage for 5.24% up to 75%
LTV, with a 2.5% fee, or opt for the flat fee of just £1,499 and pay a rate of 5.74%.
At 85% LTV there is a two-year fixed rate mortgage at 5.99% with a 2.5% fee and at 80% LTV,
a two-year fixed rate at 5.69% with a 2.5% fee or a 5.99% rate with a flat fee of £1,499.
Charles Morley, Head of Sales and Product Development at Kensington, said: “Increasing
demand for private rental property is one of the few areas that commentators agree on at the
moment and consensus is that there remains significant opportunity for investors in Buy to
Let. The problem for landlords is that, up until now, there have been few products that have
really played to those areas of the market where there is demand.
“But with our new Buy to Let range, Kensington have targeted those areas of demand –
providing landlords with the ability to borrow at keener rates. And, because we look at each
application as a customer and not just a number on a credit score, we have been able to lower
our required rental cover to 120% by assessing their circumstances.”
The Nationwide picks up 99% of buy to let mortgage business from mortgage brokers – and
calculator.co.uk is one place where landlords can find help to scour the market for the right
deal.
