The Mansfield launches buy to let range up to 75% LTV and updates rental income criteria

04 January 2017

Mansfield Building Society has launched a buy to let range up to 75% LTV and updated its rental income criteria in response to the Prudential Regulation Authority’s (PRA) new underwriting standards.

The new range includes 3 and 5 year fixed rate as well as 2 and 3 year discounted rate products. For house purchase and remortgage with additional borrowing, rental income must now be at least 145% of monthly mortgage interest calculated at 5.5% with the exception of the 5 year fixed rate product, which requires rental income to be at least 130% of the monthly mortgage interest calculated at 5%.

The Society’s existing FCA regulated Family Buy to Let product and its Consumer Buy to Let mortgages remain available up to 70% LTV. Rental income requirements for these mortgages remain unchanged at a minimum 130% of the monthly mortgage interest calculated at 5%. The Society will also use this rental income calculation in all instances where remortgages have no additional borrowing.

National Development Manager, Steve Walton, said that meeting the new regulatory standards was the catalyst for the Society to review and improve its overall buy to let proposition.

“Responding to the latest PRA requirements does not necessarily mean that lenders cannot continue to offer flexibility and choice. We wanted to make sure that we have the right criteria and products available for our broad buy to let customer base. By raising our maximum loan to value to 75%, brokers and their clients will benefit from increased product availability.

For landlords wanting the security of our 5 year fixed rate, we’ve maintained our lower rental cover calculation, recognising the stability that long term fixed rates currently provide to property investors. We’re also pleased to be retaining our FCA regulated Family Buy to Let on the lower rental income requirement.

We believe that brokers will welcome these changes and our commonsense and pragmatic approach to the new regime.”