Loughborough Building Society has cut the rate on its 80% loan-to-value five-year buy-to-let fixed-rate mortgage by 24 basis points to 3.25%.

It adds the product comes with a free valuation and no application or completion fees.

The mutual says the loan is available to business BTL, consumer BTL and let-to-buy applications for the purchase or remortgage of properties in England and Wales. Applicants must have a minimum income of £25,000 and be aged 25 or over.

The remortgage loan option allows for additional borrowing for property improvements, debt consolidation and capital raising to purchase another property, subject to status.

The building society uses an interest coverage ratio of 130% for basic rate taxpayers for this product. Top slicing is permitted.

It says this loan is not available to portfolio landlords, adding that the firm will not use this product to lend on flats, apartments or maisonettes. Early repayment charges are applicable throughout the mortgage term.

Loughborough Building Society national business development manager Ashley Pearson says: “I’m happy with this reduction in rate, it shows commitment to landlords, and an 80% LTV puts us in a good place in the market.”

Earlier this month, the mutual launched a 95% LTV joint borrower sole proprietor mortgage.

It said this product is set at a two-year variable discounted rate, currently 3.10% with a £499 arrangement fee, and available for residential loans in England and Wales.