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First Active enters buy to let market

First Active is introducing two new buy to let products to be sold exclusively through intermediaries.

The new products a fixed rate and a discount rate mark First Actives new phase of development.

The fixed rate product has a 5.19 per cent rate till November 30 2007 and the two year discount product a rate of 5.54 per cent variable tracking the Bank of England rate.

Customers will then go onto a long-term rate of 5.85 per cent, 1.1 per cent above BoE rate for the remainder of the mortgage term.

In addition to the normal proc fee, intermediaries will receive an additional 200 for every successful application submitted during the initial launch period.

The arrangement fee is 399 as opposed to the
and the maximum LTV is 80 per cent. The new products are targeting landlords with up to five properties in their portfolios.

First Active is also offering fast track valuations for those who need a quicker than normal decision. Affordability is judged by the monthly rental income at least equalling 130 per cent of the monthly interest payment charged at the long-term rate.

First Active national partnership manager Louis Kaszczak says: “Our focus for these two new products is the remortgage market where we aim to emulate the success we have enjoyed in residential lending. We are launching our new buy-to-let products exclusively through intermediaries as we believe their expertise is vital in the sales process ensuring responsible lending and that clients fully understand what they are arranging. At First Active, we adopt a fully integrated approach to regulation, so, like our other products, these new buy-to-let products will be distributed through FSA-regulated mortgage intermediaries.”

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