The product, which is also available from CHL’s Irish Permanent brand, is fixed until 31 May 2007 and undercuts the next most competitive product by some margin. At the end of the fixed-rate period it reverts to Bank Base Rate plus 1.65%.
It is available to individuals and limited companies, with student lets and houses divided into self-contained flats permitted. Maximum loan-to-value is 85% and rental cover is 125% of the mortgage payment calculated at the 4.75% pay rate.
Mike Healy, Head of Sales for Capital Home Loans, said: “This is probably the best fixed-rate buy-to-let mortgage in the marketplace at the current time. It is especially attractive where rent yields are tight, given that the rental cover is based on a low 125% calculated at the 4.75% pay rate. We are expecting a big rush of business on this product because it is simply the best product in the marketplace.”
The standard procuration fee payable is unlimited at 0.5% of the sum advanced. The product does not have a higher lending charge.
A 5% early repayment charge is payable until 31 May 2009. A completion fee of 1% can be added to the product, which can be used for purchase and remortgage.