A rate of 5.85 per cent is fixed until 3 September 2007 and is available up to 85 per cent loan to value.
With pundits predicting that interest rates are likely to rise over the medium term this new fixed rate offers investors the chance to lock into a fixed rate at only 0.1 per cent above today’s normal variable rate for five years.
Tony Jones, managing director at Pink Home Loans comments: “We would advise borrowers that a buy to let property should be part of a wider spread of investments and to take a long-term view. The choice of property and area is crucial to obtaining optimal results and researching the local housing and lettings market is paramount.”
With this deal from Mortgage Express, locking in for 5 years does not mean a loss of flexibility. Investors can use the exclusive ‘choices’ flexible feature to overpay up to double the monthly payment even during the 5-year fixed rate period. The overpayment can be used to take a payment holiday at a later stage which can be useful if the property remains empty for a month or two in between lets and therefore no rental income is being received.
The product is accessed exclusively through Pink Home Loans via direct and packaged submission routes.
The number of properties is limited by a maximum total borrowing of £1 million with Mortgage Express.
The main applicant must have an income of at least £20,000, however, for joint applications the combined income must be a minimum of £30,000.
Pink Home Loans offers the facility of paying broker commission within 24 hours of legal completion if an express payment request form is completed and customers can also benefit from having broker commission paid directly into their bank account via BACS.
Key product details:
- Fixed rate: 5.85 per cent
Underlying rate is Bank base rate, currently 4 per cent, plus 1.75 per cent
Fixed term: Until 03/09/07
Minimum loan: £50,000
Maximum loan: £1 million up to 60 per cent LTV
Maximum loan to value: Up to 85 per cent LTV to £300,000
Rental yield: Gross rental income must exceed 130 per cent of monthly mortgage payment calculated at the fixed rate on interest only basis
Arrangement fee: £399
Redemption fee: 6 months’ interest at the fixed rate until 03/09/07
Conditions: Number of properties limited to maximum total borrowing of £1 million
Other: Options of overpayments, underpayments and drawdown facilities
Introducer’s fee: 0.5 per cent (no maximum)
Contact: Visit Pink online at www.pink.uk.net for more information