8 May 2006
Platform launches Buy to Let
3 Year Tracker at BBR + 0.28% with no ERC
overhang
- Lender predicts a move towards
trackers, as fixed rates continue to rise
Platform, the intermediary lender of Britannia, is
delighted to announce the launch of a new Buy to Let 3 Year Tracker
product offering one of the lowest rates currently available in
this sector.
Many industry analysts are predicting an interest rate rise soon
and this has been further evidenced by the cost of fixed rate money
rising recently. As lenders will undoubtedly reprice their fixed
rates upwards over the coming weeks, this new product offers buy to
let customers a rate which not only is sub 5%, but also the rental
assessment calculation is based on the initial pay rate, enabling
them to borrow more.
Available up to 85% LTV at BBR +0.28% (rate currently 4.78%) for
3 years from completion and has no ERC overhang. There is a 1.5%
arrangement fee which can be added to the loan.
Key Product Features:
Buy to Let 3 Year Tracker:
BBR +0.28% for 3 Years from completion – currently 4.78%
Up to 85% LTV
Arrangement Fee: 1.5%
ERC – 5%/5%/5% of the amount redeemed in the first 3 years
No higher lending charge
Rental calculation based on pay rate at 125%
Maximum Loan £500,000 at 85% LTV or £1m at 75% LTV
Lending Limits – Maximum lending £3m and maximum 25 properties
Paul Hunt, Platform’s Head of Marketing said:
“After thorough research of the market, it was clear that a Buy
to Let tracker product rather than a fixed rate offering would be
far more attractive in the current market environment. With the
cost of 2 & 3 year fixed rate money now around 5%, the time may
now be right for bank base rate tracker products to take a larger
proportion of the market. This new tracker product allows us to
offer a pay rate of less than 5% which would mean that on a
£100,000 mortgage, for example, the Buy to Let borrower would only
need a monthly rental income of £500.”
Jonathan Cornell, Technical Director at Hamptons International
Mortgages commented: “We are currently seeing a significant
proportion of our business originating from tracker products, a
trend that can be attributed to the rise in the cost of fixed rate
money. The launch of Platform’s new product is a significant
development for Buy to Let lending and represents a highly
competitive value for money deal. Platform’s efforts in bringing
out innovative products of this nature must be applauded.”
Paul Hunt continued: ”After being placed 8th in the CML overall
buy to let lending table last year, this product further
demonstrates our commitment to supply competitive products in this
sector and with lenders pricing upwards in the coming weeks on
fixed rates, we believe that tracker rates will move into
ascendancy and be in greater demand.”
Back to
Press releases