The Cambridge Building Society has changed its stress rates for BTL mortgages in response to intermediary feedback and to better reflect market conditions.
The new products include a five-year fixed rate with a stress rate and pay rate both at 5.44%.
For a two-year fixed or discounted rate, the stress rate is 7.59% and 7.09% — 200bps higher than the pay rates.
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.
The lender’s BTL range includes ex-pat and holiday let products.
Kathy Bowes, intermediary manager at The Cambridge Building Society (pictured above), said: “We hope that these changes to our stress rates will provide our intermediaries with more choice for their clients and support those landlords looking to refinance or purchase a BTL property.”
