A droplock facility means that a discount applies initially but a fixed rate can be chosen at a later stage.
Nic Ekin, product manager at Pink Home Loans, comments: “Given the current situation with interest rates, fixed rates are still not as competitive as many discounted or tracker rates. This product offers the best of both worlds – a borrower can take out a discounted rate now and if, at any time they feel that they would benefit from a fixed rate, then they can easily move by utilising the droplock option.”
Key selling features
- No early repayment charges
- Droplock option allows mortgage to be transferred to a fixed rate current at the time of change (fee payable)
- Buy-to-let mortgages from other lenders ignored
- Studio flats, flats above commercial premises, ex-local authority flats and houses, and freehold flats will be considered
- Available to first-time buyers
Product details:
Funded by: Royal Bank of Scotland
Product: Discounted buy-to-let
Rate: 4.34% - 1.5% discount off SVR until 01/04/06
Max LTV: 80%
Early repayment charges: None
Broker commission: Up to 0.65% (min £200, max £1,500)
Arrangement fee: £295 (can be added)
Other: Applicants can borrow up to 10 times rental income
For more information visit www.pink.uk.net
