Buy To Let Offset Mortgage

Buy To Let Offset Mortgage Choices

Red TapeMore and more lenders are providing buy to let offset mortgages and that's hardly a surprise. Property investment has become a popular way for people to supplement their pensions, afford second homes or help their children with student housing or their first homes. Buy to let mortgages were worth about £24.5 billion in 2005, with 223,800 loans made, according to the Council of Mortgage Lenders. The offset mortgage market is also growing, so it was only a matter of time before landlords could benefit from a buy to let offset mortgage.

Lloyds TSB Buy To Let Offset Mortgage

So, what's around in the buy to let offset mortgage market? To start with, Lloyds TSB is offering a buy to let offset mortgage at 0.9 per cent above the Bank of England's base rate for the life of the mortgage. Lloyds TSB buy to let offset mortgage is available to landlords who have no more than three properties with Lloyds TSB and who want to borrow between £25,000 and £1.5 million. The maximum loan to value is 65 per cent for new flats and 85 per cent for other property. The borrower's pre-tax income must be at least £25,000 and the property must be professionally managed. The Lloyds TSB buy to let offset mortgage is offered through Cheltenham and Gloucester, though Lloyds TSB savings and current accounts can be linked to the mortgage. Unsurprisingly, Cheltenham and Gloucester's own buy to let offset mortgage is strikingly similar*.

Bristol and West Buy To Let Offset Mortgage

AdvertBristol and West offers a buy to let offset mortgage as part of its Easyflex range. These are available at 0.59 per cent above the base rate. Landlords who use the buy to let offset mortgage can have up to ten properties, each worth at least £40,000. Anything above 75 per cent loan to value (up to the 85 per cent maximum) requires a minimum income of £15,000. The Bristol and West buy to let offset mortgage is also available to self employed people. The mortgage can also be used for flats at 75 per cent of the property value. There is no requirement to use a letting agent and the Bristol and West buy to let offset mortgage is portable**.

Some lenders do not offer a buy to let offset mortgage. Instead, they offer a flexible buy to let mortgage with many of the same features, but without the need to link current and savings accounts. One example is the flexible buy to let mortgage offered by the Scottish Building Society. This is available up to 80 per cent of the property value or purchase price for properties worth at least £50,000. The maximum loan under this scheme is £250,000. The initial rate is 1 per cent below the society's standard variable rate for the first three years. There are no booking or arrangement fees. Although interest is charged monthly, the buy to let mortgage has other flexible features, such as the ability to overpay without penalty. Borrowers can also underpay and take payment holidays when they have accumulated sufficient credit***.

Landlords who are looking for a buy to let offset mortgage have a small choice at present, though that is likely to grow. In the meantime, it's worth checking with our professional offset mortgage advisors to make sure you can compare all the available buy to let offset mortgage deals.

However, please note that The Offset Mortgage Centre cannot advise on or arrange mortgages from the Scottish Building Society and Lloyds TSB.

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