Buy-To-Let Enhancements Boost Opportunities For Would-Be Landlords

Press release published on 18 April 2006 by Scarborough Building Society

Scarborough Building Society has enhanced its Buy-to-Let offering, as it continues to establish its presence in this specialist lending market.

The Society has reduced the rental calculation on its Buy-to-Let range from 130% to 125% of potential rental income, in line with its commitment to opening up this investment stream to more would-be landlords.

The latest change in lending criteria also follows feedback from brokers, who suggested their clients would welcome a shift in rental coverage requirements on this range of products.

To make this product even more accessible, borrowing calculations are also based on pay rate, rather than notional rates of interest. And all of the Scarborough’s Buy-to-Let mortgages are self-funding, with lending decisions based on a property’s potential rental income rather than the borrower’s own income.

The Society’s Holiday Buy-to-Let Mortgage, however, will retain its 150% rental calculation, as rents are typically higher.

The Scarborough’s Buy-to-Let range caters for both professional and amateur landlords, and offers products from Holiday Buy-to-Let to the recently-added Student Buy-to-Let mortgage.

All offer competitive rates of interest. However, in reflection of its commitment to intermediaries, the Scarborough is offering brokers a special, three-year fixed rate Buy-to-Let mortgage, at just 4.99%.

Head of Group Marketing Tony Burdin said: ‘As a forward-thinking Society, we are constantly looking for ways to develop and enhance our product range, to keep it in line with – or in some cases ahead of – what our competitors are offering.

‘In doing this, the feedback of intermediaries is vital, as they are in the best position to temperature-test the needs of potential borrowers. They told us there was an appetite in the marketplace for us to adjust the rental calculations on our Buy-to-Let range, and we have adjusted them accordingly.

‘We pride ourselves on our ability to move fast and adapt to needs, and this is just one example of a case where we have adjusted our offering to keep pace with requirements.’

Tony added: ‘There will be further product developments and innovations to come out of the Scarborough in the near future as we aim to offer something for everyone and adapt to market trends, and therefore I would urge intermediaries to note us as a lender to watch over the next few months.’

Any intermediaries wanting more information can contact our Broker Desk directly on 0845 130 7383, or access information via the web at www.scarboroughintermediaries.co.uk.

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