State Bank of India UK Ltd has revamped its mortgage products by launching new buy-to-let fixed rates for standard and specialist products. Effective from 20th September 2023, these new rates come with an arrangement fee of 5.00%.
The bank is offering 2-year fixed rates at up to 70% loan-to-value (LTV) starting from 3.90% for standard rates and 4.70% for specialist rates.
Additionally, 5-year fixed rates are available at up to 70% LTV, starting from 5.20% for standard and 5.35% for specialist rates.
Nick Mendes, mortgage technical manager at John Charcol, said: “This is a shock rate announcement from the State Bank of India and one at first wasn’t sure was correct.
“A 2-year fixed rate up to 50% LTV at 3.90% has become a best buy overnight, though there is a 5% fee attached to this product.
“No other lender has broken the 4.5% barrier let alone 4%. Despite the 5% arrangement fee this is by and large in line with competitors who are sitting at the top of the best buys though their fixed rates are nearly 1% more compared to SBOI new rate announcement.”
The arrangement fee can be either added or deducted from the loan amount, and the maximum LTV is set at 70%.
The bank is also offering a 0.10% rate discount for properties with an A/B/C EPC rating and is providing a refund of valuation and £300 cashback for remortgage products.
