View more on these topics

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.”


Chris Hannant

No signs of efficiency in FSA budget

So we now have the FSA proposals for fees for 2012/13. I am sure it is a surprise to no one that they have risen but I am not sure it was widely expected to rise by 15 per cent. There are plausible reasons for some increase. The value of fines collected is down, the […]

F&C rejects separate SRI sector

F&C and Kames Capital have warned against creating a separate IMA sector for sustainable and responsible investment funds. Advisers and SRI providers have complained that the funds are not very visible in the IMA sectors and advisers cannot easily compare SRI funds’ strategies on platforms. But F&C director of governance and sustainable investment Alexis Krajeski […]

2016 Global Survey of Individual Investors: How is investor behaviour rewriting the job description for financial professionals?

Trapped between expectations for near double-digit returns and strong apprehensions about investing in persistently volatile markets, investors worldwide are of the opinion that professional financial advice is worth the fee. But even though they believe individuals who work with a financial professional are more likely to achieve their goals, investors have a clear vision of […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment