New 25-year fixed mortgage for BTL borrowers
Manchester Building Society is launching two 25-year fixed-rate mortgages, including an interest-only deal, for buy-to-let investors.
Chief executive David Cowie said: “To my knowledge, this is the first time ever that a lender has offered a fixed-rate mortgage for buy-to-let investors.
“The buy-to-let market is now far more robust than the housing market as a whole.”
The rates are 5.74% for the capital repayment loan, and 5.99% for the interest-only mortgages. Both are available at up to 75% LTV and come with a £749 arrangement fee.
The society has also launched a 25-year fixed-rate mortgage for home buyers. It has an LTV of 80%, an interest rate of 5.24% and a £995 arrangement fee.
Chris Mitton, market relationship manager at Manchester BS, said long-term fixed rates were an area of the market currently not catered for.
He said: “I believe that in this climate of economic uncertainty, many people are seeking the security of knowing what their future mortgage payments will be.
“I think the buy-to-let products will particularly appeal to investors seeking to hold their buy-to-let property over the long term, and want to lock in certainty of their funding costs for an extended period of time.”