Specialist lender Bluestone Mortgages has changed its buy-to-let mortgage range, introducing an interest-only option aimed at customers looking for reduced monthly servicing costs.
Interest-only buy-to-let mortgages will be available for customers on Bluestone’s ‘Clear’ or ‘AAA’ products with a maximum LTV of 80%.
Top slicing with income will be available on all interest-only buy-to-let products, with a minimum rental income of 112% interest coverage ratio (ICR). The ICR for basic rate taxpayers will be 125%, and 140% for higher rate taxpayers.
Steve Seal, director of sales and marketing, Bluestone Mortgages, said: “Strengthening our buy-to-let proposition is a major development for us and a key part of our ongoing development plans and growth strategy.
“As a specialist lender, we are committed to providing suitable finance solutions to those who are currently underserved, or who have been excluded by mainstream lenders.
“With our flexible products and market-leading BTL lending criteria, we are confident that these improvements will provide customers with affordable borrowing solutions that suit their individual circumstances.”
All products will be available using a full income and expenditure calculation where the ICR minimum is not achieved.
The interest only product will also be made available to first-time buyers and first-time landlords investing in a buy-to-let property, but a full income and expenditure calculation will be completed on a capital and interest basis.
Danny Belton, head of lender relationships, Legal & General Mortgage Club, said: “Legal & General Mortgage Club worked with Bluestone on their launch into the UK market three years ago so it’s great to see Bluestone further develop their proposition.
“As a Mortgage Club, we are privileged to help lenders with their growth strategy and today’s offering shows how much can be achieved through a successful working relationship. This is, however, not just about expansion for Bluestone.
“It is about providing customers who might have previously felt under represented with more lending choices. This could include self-employed workers or those who have suffered a slight blip on their credit score in the past through no fault of their own.”