The Cambridge Building Society has updated its stress rates for buy-to-let mortgages in response to market conditions and feedback from intermediaries.
The new rates include a 5-year fixed rate with a stress rate at the pay rate and a stress rate of 2% above the pay rate for a 2-year fixed or discounted rate.
The required gross rental income from the security property must be at least 140% of the mortgage payment when calculated at the relevant stress rate.
These rates apply to all mortgage types, including purchase, remortgage, and further advance, with a minimum income of £25,000.
The Cambridge offers a comprehensive buy-to-let range, featuring ex-pat and holiday let options.
Intermediary manager Kathy Bowes said: “We hope that these changes to our buy-to-let stress rates will provide our intermediaries with more choice for their clients and support those landlords looking to refinance or purchase a buy-to-let property.”
