The Mortgage Works (TMW) – the buy to let subsidiary of the Nationwide – has launched a new range of let-to-buy mortgages.
Let-to-buy allows customers to buy another home while letting out their current home.
The TMW let-to-buy range has the same rates and fees as the lender’s standard buy-to-let range and is available up to 75% loan-to-value (LTV).
The range includes:
- Loan rates starting from 2.49% to 60% LTV and 2.89% up to 75% LTV
- Two, three and five-year fixed rates and two-year trackers
- Fees ranging from zero to £995
One mortgage is a lifetime variable deal tracking the TMW rate of 4.99%.
Henry Jordan, TMW managing director said: “As a sector, let- -to-buy has become a key route for customers entering into buy-to-let and these changes reflect its growing importance.”
Meanwhile, second home owners who manage holiday lets can pick up an exclusive Leeds Building Society five year fixed rate deal from mortgage brokers who are part of the Sesame network.
The rate is 4.19% until September 30, 2019.
The offer includes includes a free standard valuation up to £335.
Mortgages are up to 60% LTV with a £199 booking fee and £400 arrangement fee. A free in-house legal service is available for remortgages.
Kim Rebecchi, sales and marketing director at the Leeds, said: “Holiday lets are an appealing alternative to buy-to-let, with attractive rental returns and a second home rolled in to one.
“We estimate that up to two thirds of existing holiday let landlords would refinance their current deal in order to reduce their costs and maximise their income, but mortgage choice is limited.”
“Leeds Building Society is able to support the UK holiday market with its dedicated product range, which is suitable for new and existing holiday let landlords.”
Rebecchi suggests holiday homes on the coast and in national parks generate some of the best returns due to high demand.
A two bed cottage in Keswick, Cumbria, let for 39 out of 52 weeks a year, can attract rent of around £350 per week, rising to £650 in peak periods, she explained.