Type: Buy-to-let tracker mortgage
Tracker term: Until February 28, 2007
Tracker rate: 0.89% above Bank of England base rate
Payable rate: 5.39%
Minimum loan: 25,005
Maximum loan: Up to 85% of valuation subject to a maximum of 250,000
Income multiples: Based on affordability and credit score
Conditions: Maximum of one property allowed, flexible features by arrangement only
Flexible features: Overpayments, underpayments, payment holidays, lump sum withdrawals, interest calculated daily
Arrangement fee: None
Redemption fee: None
Introducers fee: 0.5% of original loan subject to a 100 minimum and 10,000 maximum
Tel: 08707 590170
Pink Home Loans is offering the house to house buy to let tracker mortgage, funded by The Mortgage Business, with a payable rate of 5.39 per cent.
John Charcol head of operations, London Elliot Nathan says: “This is a niche product which may not be suitable to the majority of the market. But for those it does, it offers good flexibility..” He feels it is a bit early to see how well this type of product will fit into the market. “It is only useful if rental yields are low in places,” he says.
Looking at the possible drawbacks, Nathan says: “If a client is stretched on their own personal liabilities such as mortgages and loans, this product will not be suitable. However, overall it is a good product up to 85 per cent of valuation with no arrangement fee.”
He concludes that competition will come from any products priced cheaper where rental income is calculated on the pay rate.
Suitability to market: Good
Competitiveness of rate: Good
Adviser remuneration: Good