The increased loan to value up to 89% is aprt of a deal which offers a rate of 5.19% fixed until 1 January 2009. This product is available for purchases only and has no higher lending charge or early repayment charge overhang.
Dev Malle, sales director at Pink, said; “This is a fantastic opportunity for investors to either add to their property portfolio or become a new landlord, as the increased loan to value will make a difference to the reduced amount of deposit being required”.
Tim Russell, director at storm mortgages, commented; "There is certainly a demand for increased loan to value bands for buy-to-let deals. This product not only offers the facility of an 89% loan to value but also offers a competitive rate of 5.19% fixed until 1/01/2009. I think first time investors who have small deposits will be attracted to this product".
Summary
- Rental calculation – Gross rental income, 125% monthly mortgage interest payment calculated at BBR + 1%
- Underlying pay rate: Standard Variable Rate (SVR) 6.49%
- Net broker commission 0.50%, min £225
- Arrangement fee £795 – added to the loan
- Maximum loan to value 89% up to £300,000, 75% up to £400,000, 65% up to £500,000
- Number of properties – 25 up to a maximum of £3 million with all lenders
- Minimum loan £25,001
- Maximum loan £500,000 per property
- Purchases only
- Packaged submission only
Other
- Early Repayment Charges – 3% of the amount repaid until 01/01/2009
Higher Lending Charge – N/A
