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BoS mixing tracker and fixed rates for buy to let

Bank of Scotland is offering a buy to let mortgage which combines the features of fixed-rate and tracker loans.

Borrowers pay a fixed rate of 6.99 per cent for three years, after which interest is paid at 1.75 per cent above the Bank of England base rate for the rest of the term.

There is a redemption penalty of six months&#39 interest during the fixed-rate period.

Minimum loan is £25,001 and maximum is £500,000. IFAs receive a fee of 0.5 per cent of the value of the loan or £500, whichever is greater.

BoS claims current stockmarket volatility makes the buoyant buy to let market a realistic alternative to equity-based investments.

Head of mortgages George White says: “In contrast to the uncertainty being experienced by the stockmarket at the present time, house prices continue to make steady progress. Buying to let could provide an effective alternative to stockmarket investments by providing a stable and guaranteed income.”

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