Cambridge BS improves buy-to-let stress rates
The Society says the change is to "better reflect market conditions and in response to intermediary feedback".
Cambridge Building Society has changed its stress rates for buy-to-let mortgages.
Five-year fixed rates now have a stress rate at payrate and two-year fixed or discounted rates are 2% above pay rate.
Gross rental income from the security property must be at least 140% of the required mortgage payment when calculated at the relevant stress rate.
The new rates are for all mortgage types, whether purchase, remortgage or further advance, with a minimum income of £25,000.
Earlier this year, The Cambridge re-entered the expat buy-to-let market.
Intermediary manager, Kathy Bowes, said: “We hope that these changes to our buy-to-let stress rates will provide our intermediaries with more choice for their clients and support those landlords looking to refinance or purchase a buy-to-let property.”
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