Chorley Building Society has introduced First Time Landlord (Buy to Let) products, following feedback from brokers.
The new products offer a lower interest rate than the society’s standard First Time Landlord product and have a fixed 3% scheme fee.
Product details include; for First Time Landlord 75% LTV – 4.64% (3.65% discount from current SVR); and for the Ltd Company BTL – First Time Landlord 70% LTV – 4.64% (3.65% discount from current SVR).
The lender’s standard First Time Landlord product has a fixed scheme fee of £1,499 and has a higher interest rate.
With the new products the lower interest rate will support the Interest Coverage Ratio (ICR) calculation (rent required to support the mortgage payments).
Commenting on the launch Chorley BS head of operations Liz Pearson said: “We listen to all comments from our broker network. The potential to offset a scheme fee (dependent on the landlord’s individual tax liability status) and benefit from a lower interest rate, was something that had come up many times.”
She added: “We recently included this change within our standard Buy to Let range and we are delighted to now launch this for First Time Landlords.”
