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Pink adds to buy-to-let crowd

Pink Home Loans is adding to the growing buy-to-let market with the exclusive buy-to-let tracker mortgage.

Introduced straight after the Bank of England cut its base rate to 4.75 per cent, the mortgage has an interest rate set at 0.99 per cent above the base rate for the first three years, giving it a payable rate of 5.74 per cent. After the first three years it will revert to 1.75 per cent above the base rate.

The mortgage is available for loans of up to 85 per cent of the value of the properties bought, with the maximum amount set at £1m. It can be used to buy up to 10 properties, which can then be let out.

Pink Home Loans has set a redemption penalty of 4 per cent of the advance in the first year and 3 per cent in the second and third years. The mortgage also comes with an arrangement fee of £299.

The buy-to-let market has seen a large amount of growth over the last 18 months. According to the Council of Mortgage Lenders, in the first half of 2000 there were 80,200 buy-to-let mortgages outstanding, with a total value of £6bn. By the first half of 2001 this had increased to 130,000 mortgages, with a total value of £10bn.

There are cheaper three-year base rate tracker buy-to-let mortgages on the market at the moment. According to Business Moneyfacts on September 25, 2001, the lowest rate around is provided by Exclusive Connections. This has a rate of 0.7 per cent above the Bank of England base rate for the first three years for loans of up to 85 per cent of valuation. It then reverts to 1.2 per cent above the base rate.

However, although it has a lower rate, the Exclusive Connections can only be used to buy up to five properties, with a maximum loan limit of £500,000. It also has less competitive redemption fees than the Pink Home Loans product. If the Exclusive Connections mortgage is redeemed in the first five years then borrowers will have to pay a fee of 5 per cent in the first two years, 4 per cent in years three and four and 3 per cent in year five.


August boost for housebuying

House purchase loans inc-reased by 17 per cent in August to £11.2bn from £9.5bn in July, accounting for 67 per cent of all mortgages sold, according to the latest figures from the Council of Mort-gage Lenders. Remortgaging loans drop-ped to £4.3bn from £4.8bn in July, a 5 per cent fall from 31 to 26 per […]

A consumer&#39s view

Standard Life storms into the buy-to-let market, read a news headline a couple of weeks ago. Perhaps it is just journalistic cynicism but it is difficult to dismiss the thought that this will probably signal the top of the property investment market, at least in the short term. Those of us who have been around […]

Widows sets its focus on electronic applications

Scottish Widows has signed transaction software provider Focus Solutions to process new business applications electronically. Widows will use the Focus goal:technology system for processing and transacting its life and pensions products. The software allows insurance companies to create electronic application forms which can be used across a variety of distribution channels. The provider will use […]

Private numbers

Worsening news of the NHS&#39s ability to cope with the number of patients wanting treatment means consumer interest in the various types of PMI products is likely to increase. Consumers are not alone in their interest. The Government itself is now on record as saying that public and private sectors should work together to provide […]

Guide cover

Guide: how to… communicate with your pension members

Effective communication of your pension scheme is a large part of getting auto-enrolment right. Delivering the same message to all employees is not necessarily the way to go. To assist you with the communication of your pension scheme, we have provided some key areas to think about, such as:

  • What to consider when segmenting your workforce
  • How to communicate to pension scheme members at the right time in their member lifecycle
  • What topics you should be discussing with your pension members
  • The new pension freedoms and the importance of communicating them


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