New mortgage deals for buy-to-let landlords
13 June 2004
Buy-to-let opportunities have received a boost from the release of two new products.
Capital Home Loans and Mortgage Trust have announced they are to introduce two separate mortgages for property investors.
Capital Home Loans is offering a buy-to-let tracker mortgage. The rate for this is set at Bank of England base rate plus 0.65 per cent for the next three years. The rate is only available on loans of up to 65 per cent of the property's value.
On top of this, a completion fee of 0.5 per cent is payable, as is a redemption penalty of five per cent during the term of the tracker.
Borrowers can pay off 20 per cent of the loan penalty-free each year. The current rate on the deal is 4.90 per cent.
Mortgage Trust has said it will be offering a new fixed-rate mortgage to landlords. The rate for this is set at 5.99 per cent until 30 September 2005, just over a year away.
For this deal loans are available up to 85 per cent of the property's value.
There are no redemption penalties or higher lending fees, yet there is an arrangement fee of one per cent that can be added to the loan at completion.