Mansfield Building Society

Mansfield adds new BTL product with reduced ICR

Mansfield Building Society has launched a new five-year fixed-rate standard BTL mortgage with a lower ICR compared to its typical requirements for its standard BTL.

It offers loans between £100,000 and £500,000 at up to 75% LTV, with an initial fixed rate of 2.74% and a 3% ERC for the first three years.

Rental income for this product must be at least 125% of the monthly mortgage payment calculated at 5% (145% at 5% for higher-rate tax payers for house purchases).

The new standard BTL mortgage includes a £199 application and £1,300 completion fee.

Andy Alvarez, head of mortgage sales at Mansfield Building Society (pictured above), said: “While we operate in many niche BTL areas, our new five-year fixed-rate product is aimed at landlords who have, or are looking at, a more straightforward investment relationship. 

“We think the new product will appeal because it comes with the certainty of fixed repayments over five years and the reduced ICR will enable landlords to perhaps borrow a little more than our rental income may ordinarily allow. 

“This means that landlords may be able to consider new property opportunities or raise extra funds for light refurbishment work on an existing property.”

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