Stafford Building Society has launched two mortgages for landlords with a discounted variable interest rate of 3.05%.  

The mutual’s new standard buy-to-let and holiday BTL mortgages both come with a 3.05% rate over an initial two-year term at up to 70% loan to value. 

It will assess affordability using rental income, with seasonal variations considered for holiday lets and Airbnb.  

This is calculated using a stressed interest rate of 5.50%. The new products are suitable for landlords who want to raise capital, buy a property or remortgage an existing portfolio. 

A £100 application fee applies, along with a 5% arrangement fee, payable upon completion, or can be added to the loan balance, provided total borrowing does not top 70% LTV.  

Early repayment charges apply if more than 10% of the outstanding balance is repaid in any one year during the discounted period. 

The products are available across England and Wales, with a £50,000 minimum loan. 

Stafford Building Society national account manager Emma Parker says: “These new products have been designed to meet the needs of both traditional landlords and those operating in the holiday let sector.”