Comprehensive changes have been carried out by New Street Mortgages to its buy-to-let proposition.
The changes, which go live today (28 March), include a new low rate of rental cover, starting from 125%, the introduction of a £1 valuation fee across the board to coincide with the launch of the new £1 coin from the Royal Mint, a new 5% managed rate for 5 year fixed rates, 1 year ERC Specials, “Let to Buy” available on all products and a number of price changes, including reduction in rates up to 0.7%.
From now on, rental calculations will be tailored to individual circumstances, taking into consideration a customer’s tax rate, property location and property price, as well as working out whether or not ground rent and service charges are payable.
A new, easy-to-use online calculator will help intermediaries to quickly work out the tailored rental calculation, while an infographic – which explains the variations – is also on hand.
New Street also says the £1 valuation fee across its mortgage range will save consumers money. Based on the current average UK property price of £218,255, the £1 valuation fee will enable savings of £299. What’s more, interest rates have also been slashed on the lender's buy-to-let mortgages by up to 0.7%, with the 2 year fixed at 65% LTV and a 1.74% fee.
“Following the recent PRA changes in January which impacted buy-to-let mortgages, New Street has listened to a great deal of feedback from our intermediary partners on how we could improve our product offering to customers,” Steve Griffiths, Sales and Distribution Director at The Northview Group, commented.
“We believe this extensive overhaul of our product range, offering bespoke lower rental calculations, price reductions of up to 0.7%, a new lower managed rate of 5% for 5 year fixed rates and £1 for all valuations will see our customers benefit from this great package.”
Jane Simpson, Managing Director of TBMC, said of the changes: “I am delighted a lender has listened to our feedback by giving buy-to-let customers leading edge criteria and great value for money deals. Intermediaries and customers alike will welcome this comprehensive package of changes from New Street.”