UCB Home Loans has introduced a discounted rate buy-to-let mortgage for self-certification borrowers who are keen on property as an investment.
The mortgage has a one per cent discount for the first three years, giving an interest rate of 6.74 per cent. It is available for loans up to 75 per cent of valuation up to £350,000. If borrowers redeem during the first three years, they must pay one month interest and pay back a percentage of the discount. In year one, it is 100 per cent of the discount, in year two it is 80 per cent and in year three it is 60 per cent.
According to Moneyfacts on March 2, 2001, there are no similar mortgages on the market. But the UCB Home Loans mortgage has a very good rate for a self-certification mortgage of this type, considering that West Bromich Building Society is offering a three year discounted rate buy-to let-mortgage at 6.45 per cent for borrowers with proof of income.
The Council for Mortgage Lenders estimates that the number of buy-to-let loans grew by around 10 per cent between the first and second halves of 2000. Self-employed borrowers who find it difficult to obtain proof of income could find the UCB Home Loans mortgage meets their particular needs.