Axis Bank completes on first two buy-to-let deals

The first two buy-to-let mortgages for Axis Bank have been successfully brokered by Mortgages for Business.

The deals, processed for a London-based landlord who was seeking to raise money for further investment, included remortgages of £400k to 73% LTV and £350k to 70% LTV. They were offered on two flats in the same block, both at a rate of 4.09% fixed for five years, with a fee of 1.5%.

David Whittaker, managing director at Mortgages for Business, said of the transaction: “The product suited the client not only because it’s priced very competitively but fixing over five years will provide him with some protection against future rate rises.”

He added: “Whilst rental income was not a limiting factor in this instance, a key feature of the product chosen is the favourable Rent to Income (RTI) calculation of 125% at pay rate (4.09%) instead of the common average of 125% at 5% which means it works well for high value, low-rent properties.” 

The deals were processed from offer to completion in just 10 working days despite the distractions of a General Election, two Bank Holidays and half-term. This is welcome news for brokers who have cases where a quick turnaround is needed. 

Axis Bank has been acknowledged as a welcome addition to the specialist buy-to-let lending sector as a result of both its rates and criteria. These include: no minimum income requirements; unlimited number of mortgaged properties with other lenders; loans up to £1m; lending to limited companies and expats; HMOs up to six beds; and multi-units with up to five units.

“It’s great to get two transactions under our belts so quickly and confirms that our processes are working well,” said Andrew Ferguson, Head of Buy to Let at Axis Bank. 

“It’s good to be working with a specialist like Mortgages for Business who have really helped to support us through the initial administration, including working with valuers and lawyers.”

He added: “The pipeline is growing nicely and we look forward to completing more deals very soon. We are delighted with the interest received so far from brokers and will continue to focus on making the broker journey as smooth as possible.”