Following the recent changes on its marketplace lending platform, UK-based LendInvest announced the launch of an exclusive five-year fix product through the lender’s Buy to Let Club. The lender reported that the product is Designed for landlords who wish to utilize a higher fee, lower interest rate loan, and allows the borrower to leverage their cash flow.
According to LendInvest, the five year fixed rate of 2.75% is available up to 75% LTV through the distributor, with a product fee of 4.99% which can be added to the loan. Affordability is then calculated at an Interest Cover Ratio (ICR) of 140% for higher rate taxpayers; 125% for limited companies and basic rate taxpayers, at an assessment rate of 4.19% against the total gross loan amount. The mortgage is available on loans up to £500,000 for purchase and remortgages, and suitable for standard property types and HMO’s.
While sharing more details about the product, Ian Boden, Sales Director at LendInvest, stated:
“We are thrilled to be working closely with Buy to Let Club to bring a product to market that’s tailor-made for portfolio landlords. We believe that the market is clearly shifting towards professional property investors who are seeking a lender that understands the dynamics of their business along with their need to manage cash flow.”
Ying Tan, Managing Director of Buy to Let Club, added:
“LendInvest has been a welcome addition to the market since its launch into Buy-to-Let loans last November. The market is in need of the innovative approach to loan provision LendInvest is adding through its use of technology to streamline the application process. It’s terrific to see the business bringing that same innovation to product design.”