GB Bank has introduced a new simplified core buy-to-let product range, now accessible via Iress’ Xplan Mortgage sourcing system. This development is significant as it enhances intermediaries’ access to the bank’s offerings, allowing brokers to source off-the-shelf products more efficiently while still catering to complex borrower profiles.
TL;DR: GB Bank’s new buy-to-let range includes fixed-rate options starting at 4.94% and is designed for brokers, offering clearer product choices; intermediaries can now access these products through Xplan Mortgage.
What are the key features of GB Bank’s new buy-to-let range?
GB Bank’s core buy-to-let range includes 2, 3, and 5-year fixed-rate mortgages with loan-to-value (LTV) options between 65% and 75%. Interest rates begin at 4.94%, with loans available from £500,000 up to £3 million. Brokers will receive a 0.75% procuration fee for successful applications. The affordability assessment varies, with a 125% interest cover ratio for basic rate taxpayers, 145% for higher rate taxpayers, and 130% for foreign nationals and expats. Additionally, top-slicing can be considered, allowing for more flexibility in assessing borrower capabilities.
How does this impact brokers and landlords?
This new product range simplifies the sourcing process for brokers, making it easier to find appropriate solutions for clients looking to invest in buy-to-let properties. The clearer product options are particularly beneficial for those dealing with complex borrower situations, as GB Bank continues to offer bespoke solutions for larger loans ranging from £3 million to £20 million. Landlords seeking financing can expect a more streamlined experience, which may lead to quicker decisions and potentially better outcomes for their investment strategies.
What does this mean for the buy-to-let market?
The introduction of GB Bank’s new buy-to-let products signifies a positive shift in the market, as it enhances competition and provides more options for brokers and landlords. As intermediaries gain access to clearer product choices, it could lead to increased activity in the buy-to-let sector, benefiting both investors and the broader property market. The focus on accommodating complex borrower profiles also indicates a growing recognition of diverse investment strategies within the buy-to-let market.
Frequently asked questions
What types of borrowers can benefit from GB Bank’s buy-to-let products?
GB Bank’s buy-to-let products cater to a variety of borrowers, including basic and higher rate taxpayers, limited companies, special purpose vehicles (SPVs), foreign nationals, and expats. This flexibility allows brokers to assist a wider range of clients.
How can brokers access GB Bank’s new buy-to-let range?
Brokers can access GB Bank’s new buy-to-let range through Iress’ Xplan Mortgage sourcing system, which streamlines the process of finding and applying for the bank’s products.