Cambridge improves BTL stress rates

The Cambridge Building Society has announced a new change to the stress rates for its buy-to-let (BTL) mortgages.

According to the lender, this will “better reflect market conditions” and is in response to intermediary feedback.

Cambridge’s new rates are a five-year fixed rate with a stress rate at the payrate and 2% above pay rate for a two-year fixed or discounted rate. Gross rental income from the security property must be at least 140% of the required mortgage payment when calculated at the relevant stress rate.

The new rates are also for all mortgage types, whether purchase, remortgage or further advance, with a minimum income of £25,000. Cambridge has a comprehensive BTL range which includes products that cover the ex-pat and holiday let markets.

Intermediary manager at the society, Kathy Bowes, commented: “We hope that these changes to our BTL stress rates will provide our intermediaries with more choice for their clients and support those landlords looking to refinance or purchase a BTL property.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


The UK housing market in 2024
The performance of the UK housing market in 2024 has largely exceeded many people's expectations, although challenges remain for first-time buyers due to house prices increasing and a testing rental market for many. Regional disparities, such as the North-South divide, also continue to influence housing accessibility and affordability for many buyers in pockets of the country.

Intergenerational lending
MoneyAge News Editor, Michael Griffiths, hosts Family Building Society BDMs, Amar Mashru and Arif Kara, to discuss intergenerational lending and explore ways that buyers can use family income to help increase their borrowing capacity when applying for a mortgage

Helping landlords make their cash work harder
MoneyAge Editor, Adam Cadle, talks to Family Building Society BDMs, Arif Kara and Nathan Waller, about the resilient BTL market, the wide variety of landlords that Family Building Society caters for, and how niche products like an Offset mortgage can help improve cashflow.