Darlington Building Society has raised the maximum loan-to-value across its limited company buy-to-let range from 75% to 80%, widening access for landlords using special purpose vehicles.
The change follows the mutual’s entry into the limited company buy-to-let market in November last year and responds to rising demand from landlords looking to hold investment properties within an SPV structure. Interest has increasingly come from borrowers with smaller portfolios, as well as first-time buyers and first-time landlords, rather than only established portfolio investors.
Darlington’s limited company buy-to-let range continues to offer:
a two-year fixed rate at 5.29%
a five-year fixed rate at 5.39%
Both products come with a £999 product fee plus a valuation fee and are available for purchases and remortgages.
The criteria allow applications from first-time buyers and first-time landlords, with no minimum income requirement or minimum ownership period. Borrowers can also use the loans for holiday let properties, and applications benefit from access to a non-restricted solicitor panel.
Darlington has expanded criteria within its Professionals range for key workers and entered the foreign currency mortgage market, moves designed to give brokers additional ways to support clients with complex income profiles or overseas earnings.
“Limited company buy-to-let is not new, but the needs of these borrowers have shifted,” said Chris Blewitt, head of intermediary distribution at Darlington Building Society (pictured). “In the past, it was largely the space of specialist lenders working with portfolio landlords. We are now seeing more interest from those with smaller holdings and first-time buyers or first-time landlords. This is a space where Darlington has always been strong.
“As a lender that understands individual cases and the profile behind them, we felt the market needed our support now more than ever,” he added. “Raising LTV to 80 per cent gives brokers an extra tool when helping clients structure their borrowing in a way that suits long-term plans.”
