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.”

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