Leeds cuts stress rate as more BTL borrowers seek longer term fixes
Leeds Building Society has reduced its stress rate on Buy to Let fixed rate deals for five years or more.
The stress rate has been reduced from 5.5% to 4.5% for Buy to Let purchase or remortgage with additional borrowing on longer term fixed rate mortgages.
“As borrowers continue to seek more certainty over costs, we’re seeing a rising number of Buy to Let landlords seeking longer term fixed rates, a trend that was already noticeable, even before we moved into a rising inflation and interest rate environment.” said Martese Carton, Director of Mortgage Distribution at Leeds Building Society.
“This change will support more borrowers’ aspirations and give them the stability and security over their monthly payments.
“Reducing our stress rate for longer term fixed rate products gives the applicant greater borrowing power with an added opportunity to capital raise to improve their properties’ energy efficiency.”