New range of BTLs from the Mansfield
Mansfield Building Society has introduced a new range of buy-to-let deals for up to 70 per cent of valuation, including a three-year discounted rate buy-to-let at 3.8 per cent.
This deal has a 1.79 per cent discount, giving a pay rate of 3.8 per cent. The lender says challenging market conditions have resulted in some properties for sale at bargain prices, leading more people to look at investing in property through buy-to-lets for the first time. The lender is targeting its new buy to let at this part of the market as well as existing landlords.
Like the rest of the range, the three-year discount deal is available for properties in England and Wales, for purchase or mortgage, within a £300,000 maximum. It has a £799 arrangement fee and the Mansfield feels that having arrangement fees under £1,000 is an attractive feature. A 3 per cent early redemption charge is payable in the first three years but borrowers can make capital repayments of up to 10 per cent a year in the discount period without penalty.
Defaqto insight analyst for banking David Black says: “Buy-to-let mortgages are currently characterised by having both higher interest rates and higher arrangement fees than their residential mortgage counterparts. The average arrangement fee currently charged by BTL mortgages is £2,221 and the Mansfield’s offering is one of the 28 per cent of BTL mortgages that have an arrangement fee of less than £1,000.
“Compared with the other discounted BTL mortgages it’s certainly competitive, but you need to bear in mind that the Mansfield does have a slightly higher than average standard variable rate at 5.59 per cent.
“The vast majority – 63 per cent - of BTL mortgages are fixed rates and 26 per cent are trackers. This gives a big clue as to the type of mortgages likely to be in greatest demand.”