Abbey Branches into Buy to Let with Mixed Reactions

19 December 2011 Categories: News

Abbey Branches into Buy to Let with Mixed Reactions

Abbey for Intermediaries, a part of the Santander network, recently launched a new line of buy to let mortgages aimed at non-professional landlords with fewer than 3 current mortgage loans. The two new products are available to employed individuals aged 21 to 70, on a 25% or 40% deposit basis. Properties bought with the buy to let mortgages must have a minimum purchase price of £100,000 and a rental cover of 125% or more. The interest rates range from 4.29% up to 5.19% depending on the amount of deposit offered.

The director of retail assets at Abbey for Intermediaries, Phil Cliff, said “We are delighted to be able to support the intermediary market with the launch of our buy-to-let offering for non-professional landlords. The range is designed to meet the needs of new or small volume landlords adding a first or second buy-to-let property, and we expect to see strong interest from intermediaries and their clients.”    

Buy to let landlords who were asked for their opinion on the two new products gave very mixed reactions. A few were pleased to see Abbey branch into the buy to let market and thought the mortgage deals were a step in the right directions. The general consensus however seemed to be that Abbey is still to produce anything that can be considered better than the mortgage options already available on the market. Coupled with the bad press that Abbey has recently received regarding their poor customer service and it seems most non-professional landlords will continue to look elsewhere for their mortgage deals.