Magellan Homeloans has launched a suite of buy-to-let mortgages which will initially only be available through a limited selection of its intermediaries across the UK.
The new buy-to-let mortgage range includes tailored mortgages for individuals and Limited Companies – Special Purpose Vehicle (SPV) and trading – with up to four applicants/shareholders.
For joint landlords with different tax rates, Magellan is offering a bespoke Income Cover Ratio (ICR) test, starting at 125%, which enables landlords to benefit from the tax efficiency of joint ownership.
In addition to shared houses, studio flats, new build property, HMOs and multi-units, Magellan will consider property that has recently been, or intending to be, refurbished by the landlord. Tenancies and tenant types including Assured Shorthold Tenancies, Common Law tenancies, corporate, students, plus state-supported and Housing Association tenants will also be considered.
The lender has also developed a Buy-to-let Guarantor option, which it believes to be unique. This enables experienced or professional landlords to support first-time landlords such as spouses or dependants get into property investment and inexperienced landlords invest in alternative types of property, without the Buy-to-let Guarantor having the tax liability that comes with being a joint owner.
The Magellan buy-to-let product range offers two and five year fixed rates plus trackers, the latter attracting no Early Repayment Charges. Rates start from 2.69%.
Simon Read (pictured), Magellan’s managing director, said: “We believe that being a landlord in today’s housing market is complicated enough – getting a mortgage shouldn’t be. We’ve been developing our buy-to-let products over quite some time which has enabled us to really take account of the changing requirements and demands placed on landlords.
“It’s important to remember that what’s key for today’s landlord is how to maximise their profitability within the current tax and regulatory frameworks. We’ve designed our buy-to-let mortgages in ways that help them achieve this within a simplified process.
“We have built a dedicated buy-to-let team who average almost a decade’s worth of experience in this sector. We’re passionate about this market, and believe we have a range of mortgages designed for landlords, by landlords.
“We’re excited to be working with our selected intermediaries for the launch phase which will allow us to monitor these products and learn from their feedback. All of which will be used to support the plans to expand this range which are already in development.”
