The buy-to-let deal is a 1.75% two year discount converting to a rate of 4.24% and is available up to 70% LTV for remortgage and purchase customers. The £1,300 completion fee can be added to the loan provided the LTV does not exceed the 70% LTV once added and there is a booking fee of £199 along with a free standard valuation up to £335.
It has tapered early repayment charges of 3% in year one and 2% in year two of the amount redeemed and 10% capital repayments are allowed each year with no penalty. The maximum loan amount allowed for this product is £500,000.
This launch comes on the back of the recent announcement by Leeds Building Society that it plans to increase its mortgage lending by 25% in 2011 to £1.25bn. It says it continues to adopt a prudent approach to lending and its average LTV on new mortgages in 2010 was 53%. All of the society’s residential lending is funded entirely by retail savings.
Phil Whitehouse, Head of TMA, commented:
“The buy-to-let market is certainly one of the most widely anticipated lending arenas in 2011 with confidence, lenders and products all gradually returning to the market. In a TMA Distribution Indicator survey undertaken late last year 54% of respondents said that they were definitely more confident in regards to the future of the buy-to-let sector than at the same time last year.
"Confidence levels have certainly shown no sign of wavering and if anything have grown even more. This exclusive product with Leeds Building Society, which we believe will be very popular with our members, illustrates the appetite of some lenders in this market and we can only hope that this continues in the coming months.”
Phil Coombes, Head of Intermediary Sales at Leeds Building Society, added:
“I’m delighted we have been able to work closely with a major mortgage club in TMA to produce an exclusive product that will help this important market in 2011.”
