Castle Trust Bank locks in rate for revamped buy-to-let product

It aims to offer brokers and their clients more certainty in a rising rate environment

Castle Trust Bank locks in rate for revamped buy-to-let product

Castle Trust Bank has revamped its TermTen buy-to-let product, which features a booking fee of 0.07%, to ‘lock in’ the current rate.

The fee is payable when a credit-backed DIP has been agreed and will secure the rate for 120 days once the terms have been issued. If the loan completes within this timeframe, the booking fee will be deducted from the arrangement fee at completion.

TermTen is available for 4.96% up to 75% LTV for loans on HMOs, standard buy-to-let properties, holiday lets, portfolios and Multi-Unit Freehold Blocks (MUFBs). The rate is fixed for five years, with ERCs payable only during the fixed rate period, and the maximum loan size is £15 million.

Castle Trust Bank can consider applications from all types of buy-to-let investors, including portfolio landlords, first-time landlords, individual and limited companies – including complex structures. Loans are also available to expats and foreign nationals.

Barry Searle (pictured), managing director of property at Castle Trust Bank, said they are introducing the changes to provide brokers with certainty about the rate they can offer at a time when interest rates are so volatile.

“Our revamped TermTen loan not only provides buy-to-let landlords with the opportunity to finance specialist or complex investments over a longer term than a traditional bridging loan, but it also now gives them the certainty of locking into the rate they are quoted during a DIP,” Searle pointed out.

“In a rising rate environment, where lenders frequently increase their pricing, this innovative new feature provides peace of mind that, as long as the loan completes within 120 days, the rate a broker quotes to their client is the rate that they are guaranteed to get.”