Lender introduces cashback on buy to let mortgages to help cash strapped landlords
A British lender is introducing cashback incentive on buy to let mortgages as part of a policy to support more landlords at a time when they are facing rising costs.
Leeds Building Society says that its cashback on two and five year fixed rate buy to let products have been increased from £500 to £1,000 and it hopes it will help landlords with the finishing touches and costs associated with finding tenants for a new property.
Highlights of the updated cashback range, which include a free standard valuation, include a 2.69% two year buy to let mortgage available up to 60% LTV (loan to value) with no fee and a 2.74% five year buy to let mortgage available up to 60% LTV with no fee.
‘We’ve increased the cashback incentives available on some of our buy to let products while maintaining our product rates,’ said Matt Bartle, Leeds Building Society’s director of products.
‘Landlords can choose how to spend the £1,000 cashback available. Cash freed up at the start of the mortgage could go towards redecorating costs and fees associated with finding tenants,’ he explained.
‘Increasing cashback available on our buy to let range is a further example of how we’ve used our expertise and experience in the market to understand and respond to the needs of customers,’ he added.
The launch of the products follows the introduction of the Easy Start buy to let mortgage, with an interest rate of 0% for the first three months.