Buy-to-let and limited company lending

by Aaron Strutt

Feb 23 2010

Trinity Financial has secured access to a market leading buy-to-let mortgage at 3.40% and it is available to investors with a 40% deposit. The arrangement fee is 1.25% of the loan amount and the penalties for repaying the mortgage early are 1% within the first two-years. This mortgage is available to limited companies.

Aaron Strutt, product manager at Trinity, says: "The Mortgage Works (TMW) has made a return to limited company lending with three new mortgages. Many mortgage lenders have scaled down lending to companies over the last two-years and it is a positive sign to see mortgages being made available.  TMW has also made reductions to their standard buy-to-let mortgage rates by up to 0.3%."

Leeds Building Society changed their criteria to access their standard variable rates this week by introducing two tiers. The arrangement fee now changes depending on the amount an investor needs to borrow and, to qualify for the mortgage, they must now earn a minimum of £20,000 per year.

The Leeds' rate is still 5.79% variable, but the fees are more expensive. Loans up to 60% of the property value have a £999 arrangement fee and loans above between 60% and 70% ltv have a £1549 fee.

February 18, 2010