GB Bank has introduced a new simplified core buy-to-let range, now available on Iress’ Xplan Mortgage sourcing system. This development is significant as it enhances intermediaries’ access to the bank’s off-the-shelf products, allowing brokers to source clearer options tailored to various borrower profiles.
TL;DR: GB Bank’s new buy-to-let range offers 2, 3, and 5-year fixed rates starting from 4.94%; intermediaries can now access these products via Xplan Mortgage, benefiting landlords and brokers alike.
What Buy-to-Let Products Are Available?
GB Bank’s core buy-to-let range includes fixed-rate options of 2, 3, and 5 years, with loan-to-value (LTV) ratios ranging from 65% to 75%. Interest rates begin at 4.94%, and loans can be secured for amounts between £500,000 and £3 million. Additionally, a 0.75% procuration fee is applicable for brokers facilitating these loans.
How Does This Impact Intermediaries?
The integration of GB Bank’s products into the Xplan Mortgage system is designed to streamline the sourcing process for intermediaries. This means brokers can quickly find suitable options for their clients, which is particularly beneficial in a competitive market. The bank’s flexibility in considering complex borrower profiles, including limited companies and foreign nationals, further enhances the appeal of their offerings.
What This Means for Landlords
For landlords looking to expand their portfolios, GB Bank’s new buy-to-let products provide a range of options that cater to different financial situations. With affordability assessments based on a 125% interest cover ratio for basic rate taxpayers and varying criteria for higher rate taxpayers and foreign nationals, landlords can find tailored solutions that meet their needs. The introduction of top-slicing considerations also allows for more nuanced affordability assessments, which can be advantageous for those with diverse income sources.
What Should Brokers Watch Next?
Brokers should keep an eye on how GB Bank’s new offerings perform in the market, particularly in terms of uptake and feedback from clients. The focus on simplifying product options is likely to resonate well with both intermediaries and borrowers. Additionally, as market conditions evolve, further adjustments to product offerings may occur, so staying informed about changes will be important for brokers aiming to provide the best advice to their clients.
Frequently asked questions
What types of borrowers can benefit from GB Bank’s buy-to-let products?
Borrowers including basic rate taxpayers, higher rate taxpayers, foreign nationals, and those using limited companies or SPVs can benefit from GB Bank’s flexible buy-to-let offerings.
What is the minimum loan amount for GB Bank’s buy-to-let products?
The minimum loan amount available through GB Bank’s buy-to-let products is £500,000.