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UCB returns to buy-to-let arena as people show renewed interest

Nationwide&#39s specialist lending arm, UCB Home Loans, is re-entering the buy-to-let mortgage market follow-ing a surge of people looking to invest in property.

UCB&#39s Buy2Let product is being launched next month. The company has been absent from the market for a year.

The loan allows the purchase of up to two investment properties and is aimed at people looking for a long-term investment.

The rate is 6.99 per cent with a 1 pent discount for the first three years and is offered on a self-certification basis, with income based both on personal earnings and proposed rent income.

The mortgage is available for up to 75 per cent loan to value. Maximum loan is £350,000.

Borrowers will be able to remortgage their main residence to raise capital. Investment buildings insurance is available although not compulsory.

The fee for organising a loan is £495, regardless of loan size.

Managing director Charles Reed says: “When asked for their views, intermediaries said the key product that could be added to UCB&#39s existing portfolio was a buy-to-let product.

“Figures from the Council of Mortgage Lenders confirm the value of outstanding buy-to-let mortgages has increased by £2.5bn in the 12 months ending Dec-ember 1999.”

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