The Metro Bank is the latest to make changes to its buy to let mortgage portfolio in a bid to attract more business from professional landlords.
It has launched a new five year fixed rate product from 3.59 per cent, with applications assessed on a cross-collateralised basis to appeal to multi-property borrowers.
It is also offering a range of fee-free products for existing customers and, in line with recommendations from the Bank of England, it has changed its stress tests for applicants to require rental income of at least 125 per cent at a notional 5.5 per cent interest rate.
These changes are in line with the trend now seen widely, of banks on the one hand having to conform with stricter stress tests and on the other hand offering increasingly competitive rates as competition between rival lenders hots up.
“We’re absolutely committed to supporting the growing number of professional landlords, while also rewarding loyalty. Today’s announcement is just the first of a series of initiatives that we hope will help our customers grow and develop their portfolio” says Mark Stokes, managing director of commercial banking at Metro Bank.