British Company Offers Buy-To-Let Product

A large British lender has approved a product allowing landlords to expand their portfolios. The deal could be good all around, since landlords would be able to offer more competitive rent rates.

Mortgage Trust, a British lender, is now offering a two-year fixed rate mortgage at 5.09 percent for a specialist buy-to-let product. The MT Select range product is designed to allow landlords to increase the number of buildings held, as well as offering rates much lower than previously offered. The product also offers low arrangement fees, making the loan even more appealing.

The rate will be fixed until September of 2008 and will cost less than 700 pounds to arrange. The savings could trickle down to renters, since landlords would be able to offer more competitive rates to their clients. The product gives borrowers the comfort of having a fixed initial period with little outlay in the beginning. Overall, the new loan could cause quite a stir in the renting community based on a trickle-down effect. Mortgage Trust is hoping the new option will generate interest in a niche market that has seen rising rates over the past year.