After the broker’s feedback, the Chorley Building Society introduced the first landlord (purchase) product.
The interest rate for new products is lower than the association’s standard first-time landlord products and has a fixed 3% plan fee.
Product details include; First-time Landlord 75% LTV – 4.64% (3.65% discount on current SVR); for LTD Company BTL – First-time Landlord 70% LTV – 4.64% (3.65% discount on current SVR).
The lender’s standard first-time landlord product has a fixed plan fee of £1,499, with a higher interest rate.
With the new product, lower interest rates will support interest coverage (ICR) calculations (supporting the rental required for mortgage payments).
Liz Pearson, head of operations at Chorley BS, said: “We listened to all the comments from the broker network. The potential for offsetting the planning fee (depending on the landlord’s personal tax liability profile) and benefiting from lower rates, which are many times.”
She added: “We recently added this change to our standard purchases to get Range Range and we are happy to launch it now as a first-time landlord.”
