GB Bank has introduced a new simplified core buy-to-let product range accessible through Iress’ Xplan Mortgage sourcing system. This development is significant as it enhances intermediaries’ ability to quickly find and offer a variety of buy-to-let options to their clients, catering to both straightforward and complex borrower profiles.
TL;DR: GB Bank’s new buy-to-let range offers intermediaries streamlined access to products with fixed rates starting at 4.94% and loan amounts from £500,000 to £3 million; this expansion allows brokers to better serve diverse client needs.
What Buy-to-Let Options Are Available?
The new core buy-to-let range from GB Bank includes fixed-rate options over 2, 3, and 5 years, with loan-to-value (LTV) ratios ranging from 65% to 75%. Rates begin at 4.94%, and loans can be secured for amounts between £500,000 and £3 million. Additionally, brokers will receive a 0.75% procuration fee for these transactions. This range is designed to provide intermediaries with clearer product choices while still accommodating more complex borrower situations.
How Does Affordability Work?
Affordability assessments for GB Bank’s buy-to-let products are structured to accommodate various borrower categories. Basic rate taxpayers will need to demonstrate a 125% interest cover ratio, while higher rate taxpayers will require 145%. For foreign nationals and expatriates, the requirement is set at 130%. Furthermore, the bank is open to considering top-slicing, which allows for additional income sources to be accounted for in the affordability assessment.
What This Means for Brokers and Landlords
The introduction of GB Bank’s buy-to-let products on the Xplan Mortgage platform represents a notable shift for brokers and landlords. Brokers now have quicker access to a range of competitive products, which can enhance their service offerings to clients looking for buy-to-let investments. For landlords, this means more options to consider when financing their property purchases, particularly those with unique financial situations or complex ownership structures.
What Other Products Does GB Bank Offer?
In addition to the core buy-to-let range, GB Bank continues to provide bespoke solutions for more complex buy-to-let and bridging loans, with amounts ranging from £3 million to £20 million. This flexibility allows brokers to cater to a wider array of client needs, especially those requiring tailored financial solutions.
Frequently Asked Questions
What are the key features of GB Bank’s new buy-to-let range?
The new buy-to-let range includes fixed rates starting at 4.94%, LTV options between 65% and 75%, and loans from £500,000 to £3 million, with a 0.75% procuration fee for brokers.
How is affordability assessed for these buy-to-let products?
Affordability is assessed based on different interest cover ratios: 125% for basic rate taxpayers, 145% for higher rate taxpayers, and 130% for foreign nationals and expats, with top-slicing considered.