"Landlords should have the opportunity to choose a property that is appropriate for their family circumstances and needs without having to charge excessive rental payments purely to meet strict ICR calculations. "
Unlike traditional buy-to-let products which have a typical ICR of 125% at 5.5%, the family buy-to-let product has been tailored for those landlords only wishing to charge close family members rent equal to their monthly mortgage payment.
Landlords must have a minimum earned income of at least £20,000 with sufficient uncommitted income to support the ICR shortfall.
The mortgage is a three-year discounted variable rate and is available from 4.24% up to 75% LTV with a £199 application fee and a £1,800 completion fee.
Head of products, Mike Taylor, said: “By allowing uncommitted personal income to be taken into consideration, we believe that we’re providing a terrific option for landlords looking to purchase (or remortgage) a property to let out to parents, siblings or children.
"We feel it’s important that, where uncommitted personal income is available, landlords should have the opportunity to choose a property that is appropriate for their family circumstances and needs without having to charge excessive rental payments purely to meet strict ICR calculations.
"We can see this type of lending appealing to those looking to give loved ones independence and security whilst retaining and accumulating wealth in the property over time.
"Not only does this new product show how the Society’s pragmatic underwriting can support niche markets, it is also offering increased choice, something that we believe fits well with our mutual ethos.”
