Leeds launches offset BTL product

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A new offset buy to let mortgage has been released by leeds building society.

Leeds Building Society has launched its first offset buy-to-let (BTL) mortgage at 5.99 per cent.

The lifetime tracker product is available up to 80 per cent loan to value, there is no higher lending charge and unlimited repayments are allowed at any time, without notice or penalty.

Karen Wint, head of marketing and PR at Leeds Building Society says, "The ability to offset on a buy-to-let will prove popular with many landlords, particularly as this product is available up to 80% loan to value. Furthermore, for a higher rate taxpayer, this is the equivalent of receiving a gross return of 9.98% on their savings, which is simply unachievable any other way for a risk free investment.

"Clearly, this type of mortgage offers excellent value and can enable people to be mortgage free earlier. The savings are kept separate from the mortgage account so landlords have full instant access to them at any time, without penalty. It is also possible to add to the savings account and reduce the amount of interest paid even further. Ideal for saving the tenants bond and any additional rental income over and above the mortgage payment."

If a landlord saves only £100 a month, in addition to the mortgage repayment, the mortgage will be paid off 3 years and 6 months early (assuming a 25 year term) and the total interest saving would be £22,338.

Karen Wint added, "Building up savings on a monthly basis really makes a difference. The more landlords build up, the quicker they pay off their mortgage and the amount of interest saved increases. It is not necessary to have a large amount of savings to benefit from the tax efficiency, flexibility and cost saving potential of an offset mortgage."