4 October 2004
Platform 'track' Buy to Let market
- New Full Term Trackers launched plus, rental calculation
reduced to 125%
Platform, the "one-stop" intermediary lender of
Britannia Building Society, is enhancing its Buy to Let range with
the launch of two competitively priced Full Term Tracker mortgages.
It is also enhancing the terms applicable across its ‘Buy to Let’
range with a reduction in its rental income calculation, from 130%
to 125%.
The fact that the Bank of England base rate has been creeping
upwards over the past year is making it more difficult for
landlords to balance the rental income they receive with the loans
they need to borrow, as rental yields haven’t increased in line
with interest rate rises. As one of the major players in the
intermediary sector in this market, Platform is maintaining its
leading position by responding to these current economic
conditions.
NEW FULL TERM TRACKER MORTGAGES – KEY FEATURES
SUMMARY
|
Full Term Tracker
1
- No early redemption charge
- Bank Base Rate + 1.35% for life of
loan
- Maximum LTV = 85%
- Available to conforming
borrowers
|
Full Term Tracker
2
- With early redemption charge
- Bank Base Rate + 0.99% for life of
loan
- Maximum LTV = 85%
- Available to conforming
borrowers
|
REDUCTION OF RENTAL INCOME CALCULATION -
SUMMARY
Platform is reducing its rental income calculation from 130% of
monthly repayments to 125% on all conforming and non-conforming Buy
to Let products. This reduction has the effect of reducing the
amount of rental income needed to meet the monthly repayments.
E.g. Currently, on a 5 year Tracker Mortgage of £100,000 at
5.65%, the monthly rental income required on 130% is
£612. When this is reduced to 125%, the monthly
rental income goes down to £588.
Guy Batchelor, Sales & Marketing Director at
Platform, commented;
"We have worked hard over the past eighteen months to increase
our marketshare. The performance of our ‘Buy to Let’ loans has been
exceptional and as interest rates have increased over the last 18
months, we want to be in a position where we can attract more
business.
"We are clearly providing the products that our clients need and
will continue to do so by watching the market carefully and
responding accordingly. We also believe in providing choice in
terms of products, at extremely competitive rates."
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