Mortgage Express to waive buy-to-let early repayment charges

In a move intended to help buy-to-let landlords, early repayment charges for borrowers who pay off their mortgages early, between February and June 2009 will be waived by Mortgage Express.

Bradford and Bingley’s buy-to-let lending arm has stopped lending but is offering this waiver to provide existing borrowers with the freedom to move their mortgages to another company, pay off their loans early or sell their properties.

The firm is also keen to help new buy-to-let customers by referring them to an advisor. The firm’s website states, ‘we may not be able to offer our customers a competitive new deal when they come to the end of their existing product term…[but]…if you are an existing customer moving home, looking for a new deal or require additional funds then call Mortgage Express or speak to your financial adviser.”

The move follows an Association of Residential Letting Agents review that found that the average loan to value for a buy-to-let investors, across their portfolios, is just 56%. This is good news for landlords as buy-to-let interest rates are still reasonably high and a lower loan-to-value means a lower interest rate.