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August 3, 2011 11:46 am
Yorkshire Building Society entered the buy-to-let mortgage market on Wednesday, with a limited number of products that are only available for properties in London and the South East of England.
The building society is launching its buy-to-let products through Accord, its intermediary arm, and the loans will only be offered through two brokers initially: London & Country and The Buy-to-Let Mortgage Business.
Yorkshire is initially limiting its buy-to-let mortgages for properties in selected postcodes in the South East. This includes London and towns such as St Albans, Colchester, Luton, Reading and Brighton.
It also stipulates that the buy-to-let property must be no more than a 40 mile drive from one of the applicant’s main residence.
The buy-to-let applicant has to be aged 30 or older, or 35 if they are a first-time landlord. They must also earn a minimum income of £35,000.
Yorkshire said it is launching its buy-to-let products initially through two brokers before rolling it out to a wider selection of brokers, in order to test its systems.
It confirmed it would also broaden the availability of the buy-to-let loans to more areas in the UK later in the year.
“Initially, we plan to offer products for properties located in London and the South East to ensure a manageable entry into the market,” said Jeremy Law, head of buy-to-let at Yorkshire.
“However, we hope that we may be able to extend our geographical spread later in the year once we have our operation up and running.”
Yorkshire’s launch comes at a time when the buy-to-let mortgage market is becoming increasingly competitive. In March, Skipton Building Society re-entered the market after withdrawing from the sector two years ago.
Santander and Metro Bank have both signalled plans to enter the sector this year as soaring rents and high yields, on the back of rising tenant demand, attract investors back to buy-to-let.
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