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PInk offers landlords flexi option

PINK HOME LOANS

Mortgage Trust Flexible Buy-to-Let Libor Tracker

Type:
Flexible buy-to-let tracker mortgage

Tracker term:
Three years

Tracker rate:
Libor plus 0.95%

Payable rate:
4.995%

Minimum loan:
£30,000

Maximum loan:
Up to 85% of valuation subject to a maximum of £250,000,
up to 80% of valuation subject to a maximum of £500,000,
up to 75% of valuation subject to a maximum of £1m,
up to 70% of valuation subject to a maximum of £5m

Income multiples:
Rental income must be at least 130% of
monthly mortgage repayments

Flexible features:
Overpayments, underpayments, lump sum withdrawals,
interest calculated daily

Arrangement fee:
£499

Redemption fee:
5% of original loan in first three years

Introducer&#39s fee:
0.5% of original loan

Tel: 08707 590 170

Pink Home Loans&#39 Mortgage Trust Flexible Buy-to-Let Libor Tracker follows the Libor rate for three years and enables landlords to take advantage of flexible features.

London and Country mortgage specialist David Hollingworth points out that the usual starting point when assessing a mortgage product is the rate. He says: “While there are some deals offering better rates, this tracker of 0.96 per cent above the Libor for 3 years &#45 with current payable rate of 4.955 per cent &#45 in no way disgraces itself.”

Hollingworth likes the fact that the maximum loan to valuation is 85 per cent and feels the rental calculation at 130 per cent of the annual interest at a rate of 1.5 per cent over Libor is generous. He says: “The arrangement fee at £499, while not the cheapest, is not prohibitive. There are no extended redemption penalties and the penalty is only charged when the mortgage is paid down to below £1,000, allowing virtually unlimited overpayment without penalty. It also carries a number of other flexible features including access to overpayments.”

Hollingworth feels there isn&#39t much to criticise although he thinks the arrangement fee could be a bit lower. He adds: “The only other issue is whether the flexibility of the deal is something that landlords are really looking for or will use. Many are not interested in overpaying due to the increased income tax implications this could lead to.”

Hollingworth concludes by citing Standard Life, Stroud & Swindon and Bank of Ireland as possible competitors to this mortgage.

BROKER RATINGS:

Suitability to market: Good
Competitiveness of mortgage rate: Good
Adviser remuneration: Good

Overall 8/10

Recommended

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