Student Buy-To-Let Completes Scarborough’s Package For Would-Be Property Investors

Press release published on 1 February 2006 by Scarborough Building Society

Scarborough Building Society has completed its circle of buy-to-let mortgages with the addition of a new Student Buy-to-Let product.

This means that the Society now offers something for every kind of landlord – from experienced professionals to lay investors looking for new ways of saving money towards their retirement.

This is the latest offering in the Society’s range of competitive landlord propositions, which includes the well received Holiday Buy-to-Let mortgage, launched last year and offering loans based on the projected rental income of a holiday let property, rather than the buyer’s personal income.

The new Student Buy-to-Let range offers benefits including competitive interest rates, flexible features – including monthly interest, 10% overpayments, underpayments and payment holidays – plus fee assisted options on both tracker and fixed options; ideal for re-mortgages.

Forming part of a wider lending strategy centred on targeting niche lending markets, the Society is predicting this additional activity will create new business opportunities and give potential borrowers more options.

Offering both fixed and tracker versions, the Student Buy-to-Let mortgages offer interest rates from 5.49%, self-supporting loan decisions based on a property’s projected rental income and the choice of fee assisted options. The shorter, three-year deal periods are also tailored to professional landlords who prefer the flexibility to review their mortgage arrangements on a regular basis.

The Student Buy-to-Let products also benefit from the Scarborough’s fair long-term deal policy, which includes the option of reverting to a competitive Base Rate linked ‘go to’ rate at the end of the product period, or indeed transferring to one of the Society’s Student Buy-to-Let deals available at the time – part of Scarborough’s policy of making new business deals available to existing customers.

Tony Burdin, Head of Retail Strategy, said: ‘We work in a competitive marketplace where lenders need to be innovative and listen to what borrowers want. Research has told us that niche and specialist products like Student Buy-to-Let and Holiday Buy-to-Let are under-supplied and deserve to figure in our future plans.

‘With uncertainty over stock market and pensions investments, more and more people are looking for alternative places to put their money, including property.

‘The Student Let product forms part of our overall Buy-to-Let portfolio and means that we now offer a complete solution, from those entering this marketplace for the first time to the more experienced landlord, looking to expand their property portfolio.

‘We are sure that customers will find Scarborough’s flexible approach and personal service a refreshing alternative to the more established Buy-to-Let lenders’.

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