State Bank of India looks to increase UK buy-to-let mortgage lending

According to reports, not so long ago, Indian politicians claimed their economy could rival China's and surge into double digit growth. But a slowdown in manufacturing and a lack of confidence has led to a reduction in consumer spending. However, this slowdown has not stopped the State Bank of India (SBI) from enhancing their presence in the UK buy-to-let mortgage market. The bank is keen to attract new clients and they have a competitive rate and decent lending criteria. Currently, they offer one mortgage rate and it is priced at 3.99% over the Bank of England base rate for 5 years. The arrangement fee is £1,990 and the maximum loan size is £1.5 million. The mortgage does not have any early repayment changes and the maximum loan to value is 65% or 70% in prime London.  Aaron Strutt, a broker at Trinity Financial, says: “The idea of letting out a property is not something that is even considered in India according to our contact and this means the bank has some interesting buy-to-let lending criteria.” India's economic growth slowed to 5.3 per cent in the January-March quarter to the lowest level since 2008, although the SBI is keen to lend and increase competition levels with other more traditional lenders. Trinity work with the Bank of India and we have access to their mortgage rates. Call us on 020 7016 0790. June 1, 2012