Leeds Building Society has launched two new discounted but-to-let mortgages.
The society aims to support landlords to actively manage their property portfolios as they work through the implications of the changing tax regime on their investments.
The new discount variable mortgages – at 1.14% up to 60% loan-to-value (LTV) and 1.34% up to 70% LTV – are expected to appeal to existing landlords who can remortgage to a better deal while rates remain low.
“These shorter-term discount mortgages offer market-leading rates and a package of incentives,” said Jaedon Green, director of product and distribution at Leeds Building Society.
“Widening our range of discounted residential mortgage was well-received so we’ve seen that there’s an appetite for variable rate deals – with the potential for lower monthly repayments than equivalent fixed rate mortgages – among borrowers who don’t expect interest rates to increase significantly in the near future.”
Green said while we may be in a ‘rising rate environment’, the Bank of England recognises that rates have been at historically low levels for the last decade. Therefore, any base rate increases will be small and gradual.
“The past couple of years have seen a lot of change for landlords, with the introduction of new rules for portfolio landlords and wide-ranging tax changes, the impact of which is still being felt,” he added.
“For that reason, we know landlords need to take a far more active role in managing their portfolio to maximise yield and making sure they have the best deal on their mortgage finances.”