Buy to Let

Melton ups buy-to-let loan-to-value to 75%

The Melton has raised its loan-to-value on its consumer, family and business buy-to-let (BTL) products to 75 per cent.

Three-year discounted consumer and business BTL products are available at 2.69 per cent up to 75 per cent LTV, while the family BTL option has a variable rate of 3.79 per cent for the length of the term.

Nicola Alvarez, director of sales and marketing at the Melton, said: “Now customers only require a 25 per cent deposit if they wish to invest in property to let, and our Family Buy to Let mortgage means customers can embrace the family financial resources and buy to let to family.”

All three products come with fees of £598, and the lender’s reversion rate is 4.99 per cent.

Alan Lakey, partner at Hertfordshire-based Highclere Financial Services, said the lender had improved its offering but pointed out that borrowers could still struggle with affordability.

“They were outside the scope and they have slightly moved in a bit, but in reality it may not mean a great deal,” he added.

“Why is it a discounted product when rates are going to rise? I have not arranged a non-fixed rate mortgage on buy-to-let or residential for two years. It is usually better for the client to go for a five-year fixed rate.”

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