GB Bank has introduced a new simplified core buy-to-let product range available through Iress’ Xplan Mortgage sourcing system, enhancing access for intermediaries. This development is significant as it streamlines the process for brokers to find suitable mortgage options for clients, particularly those with complex financial profiles.
TL;DR: GB Bank’s new buy-to-let products are now accessible on Xplan Mortgage, allowing brokers to source options for clients with various borrower profiles; this includes loans from £500,000 to £3 million at competitive rates starting from 4.94%.
What are the new buy-to-let products offered by GB Bank?
GB Bank’s new core buy-to-let range features fixed-rate mortgages with terms of 2, 3, and 5 years. The loan-to-value (LTV) options range from 65% to 75%, and the interest rates start at 4.94%. The products are designed to cater to a variety of borrowers, including those with complex financial situations, while also providing straightforward options for more typical cases. Loans are available from £500,000 up to £3 million, with a procuration fee of 0.75% payable to brokers.
How does this impact brokers and their clients?
This new offering is particularly beneficial for brokers, as it simplifies the sourcing process on Xplan Mortgage, making it easier to find appropriate mortgage products for their clients. The ability to access a wider range of products means brokers can better accommodate clients with diverse financial backgrounds, including limited companies, foreign nationals, and higher-rate taxpayers. The affordability assessments vary based on the borrower’s tax status, with a 125% interest cover ratio for basic rate taxpayers and 145% for higher-rate taxpayers, allowing for a tailored approach to each client’s needs.
What this means for landlords and investors
For landlords and property investors, GB Bank’s new buy-to-let products provide more options in a competitive market. The flexibility in terms of LTV and the range of fixed-rate products can help investors secure financing that aligns with their investment strategies. Additionally, the ability to consider more complex ownership structures and borrower profiles may attract a broader range of clients, including those looking to expand their property portfolios. Investors should keep an eye on the evolving market of buy-to-let financing, as competitive rates and flexible options can significantly impact their investment decisions.
Frequently asked questions
What types of properties qualify for GB Bank’s buy-to-let products?
GB Bank’s buy-to-let products are designed for various property types, including residential properties rented to tenants. They also cater to more complex ownership structures, such as limited companies and special purpose vehicles (SPVs).
Are there any fees associated with GB Bank’s buy-to-let loans?
Yes, there is a procuration fee of 0.75% payable to brokers upon completion of the loan. Additionally, borrowers should consider other potential fees related to the mortgage process.