The mortgage offers a fixed rate of 4.84% for 3 years, with an arrangement fee of 2.75%. The arrangement fee can be added to the advance, provided that the LTV limit of 70% is not exceeded.
Rental cover of 145% is required (calculated at the pay-rate). An early repayment charge of 3% applies during the fixed rate period. The maximum mortgage per property is £250,000 and each borrower is limited to owning four rental properties across all lenders.
Commenting on the launch, Bruce Tyler, chief executive, said: “Following the success of the previous 3 year fixed rate product, we are pleased to be able to issue this replacement product at a lower rate of interest. Whilst we continue to have 2, 4 and 5 year fixed rate products available, it is clear that the 3 year product has been the most popular. All other criteria remains unchanged and the procuration fee on all buy-to-let products remains at 0.5%.”