Manchester Building Society is looking to shake up the mortgage market by launching what it claims is the UK’s first 25-year fixed-rate mortgage for buy to let investors.
The lender has launched two buy to let long-term fixed rate mortgages, marking its return to this area of the market, as well as a residential mortgage that can also be fixed for up to 25 years.
Chief executive David Cowie said: “To my knowledge, this is the first time ever that a lender has offered a fixed-rate, buy to let mortgage for buy to let investors.
“The buy to let market is now far more robust than the housing market as a whole.”
The two buy to let mortgages are a 5.74 per cent interest rate for capital repayment mortgages and an interest only version at an interest rate of 5.99 per cent, both with a £749 arrangement fee.
MBS will lend up to 75 per cent of the value of a property.
The residential mortgage interest rate is 5.24 per cent with a £995 arrangement fee and MBS will lend up to up to 80 per cent of the value of the property.
Chris Mitton, Market Relationship Manager said long-term fixed rates were an area of the market which was presently uncatered for.
He said: “I believe that in this climate of economic uncertainty, many people are seeking the security of knowing what their future mortgage payments will be.
“I think the buy to let products will particularly appeal to investors seeking to hold their buy to let property over the long term, and want to lock in certainty of their funding costs for an extended period of time.”