Aimed at landlords remortgaging existing loans, the product has various rate options available, including a two-year tracker with a pay rate of 4.79 per cent.
The rental calculation is ignored up to 75 per cent loan-to-value (LTV) and above this is calculated using 110 per cent of the interest only pay rate.
Jason Neale, managing director at In-Focus Mortgage Packaging, commented: “Landlords who secured competitive rates with generous rental calculations two years ago will not find it quite as easy to refinance on similar terms.
“This is simply due to the higher pay rates and tighter rental calculations that exist right now.
“Our semi-exclusive product will allow them to take advantage of the capital growth and the reduction in LTVs by re-financing onto a very attractive pay rate. The worry of meeting rental calculation hurdles has been removed.”
Simon Biddle, director of marketing and communications at In-Focus Mortgage Packaging, added: “There is a lot of rigidity within BTL and a lot of BTL lenders will require 110 per cent of the income, and landlords may have to fill the shortfall.
“With this there is a lot of flexibility for the landlord and there is one less hurdle for them.”
Nick Blunt, head of business partner development at Mortgages for Business, commented: “This type of product has been around for quite a while now and is currently available through both Chelsea Building Society and The Mortgage Works.
“Both providers have decent product ranges and provide useful niche criteria in today’s market where rental income calculations have become a lot tighter.”