A new
buy-to-let tracker mortgage has been launched by Bananas Inc.
The House 2 House
buy-to-let mortgage does not require
mortgage holders to show proof of their rental income.
It is aimed at landlords whose rental income is not enough to qualify for a standard buy-to-let mortgage, reports Mortgage Introducer.
Standard buy-to-let
mortgages require rental income to cover one-and-a-half times the size of the mortgage, but the House 2 House mortgage uses self-certification to calculate the size of the mortgage.
Self-certified mortgages allow potential borrowers that do not fit traditional mortgage lending criteria to qualify for mortgages. It is aimed specifically at people who are unable to prove their income.
"There are a lot of budding
property investors out there who, because of house price rises, cannot obtain
finance because their rental income does not cover lenders' mortgage payment multiples," Sue Cox,
business manager at Bananas Inc, told Mortgage Introducer.
However, she says this specially designed buy-to-let mortgage "allows them to become a residential property investor by escaping the rental income proof".
The
mortgage rate for this deal will be set at 1.79 per cent above the Bank of England's base rate. The maximum
loan to value is 85 per cent.
