Leeds Building Society has cut rates across its buy-to-let range to help landlords already facing a tax and mortgage squeeze to ‘actively manage their portfolios’.
The lender is hoping to appeal to a wide range of buy-to-let investors, including those currently reluctant to commit to investing in buy-to-let property, following the stamp duty and income tax crackdown that has resulted in a squeeze on many landlords’ profits.
“Recent years have brought about significant changes for landlords, including increased tax liabilities and new regulations,” said Matt Bartle, director of products at Leeds Building Society.
Leeds BS has reduced its 60% loan-to-value (LTV) product from 1.64% to 1.49%, while its 60% LTV five-year fix has been cut from 2.29% to 2.15%.
Both deals include free standard valuation up to £999, 10% penalty free over-repayments annually and have a product fee of £1,999.
In addition, the two-year offer has a tapered ERC at 3% in the first year of the mortgage, declining to 2% in the second year.
Bartle commented: “The choice and variety of mortgages for landlords in the BTL sector continues to grow.”
The five-year deal also has a tapered ERC, set at 5% for the first two years of the mortgage, dropping year-on-year to 2% in the final year.
Bartle added: “Our reduced five-year fixed rate deal is market leading in terms of true cost, while providing the opportunity for landlords to reduce the impact of tax changes and actively manage their portfolios to protect yield.”