View more on these topics

The Mortgage Business carves BTL niche

The Mortgage Business

House 2 House Two Year Tracker

Type: Buy-to-let tracker

Tracker term: Until November 30, 2008

Tracker rate: 0.99% above Bank of England base rate

Payable rate: 5.74%

Minimum loan: £25,005

Maximum loan: Up to 85% of valuation subject to a maximum of £500,000

Income multiples: Based on affordability

Arrangement fee: £799

Redemption fee: None

Introducer’s fee: Refer to lender

Tel: 08457 253253

This deal from The Mortgage Business is a buy-to-let tracker mortgage where the income multiples are based on affordability rather than rental income requirements.

John Charcol product specialist Ash Sharma points out that the latest range of buy-to-let products released by The Mortgage Business include a 2-year tracker at Bank Base Rate plus 0.99 per cent until November 30, 2008, to give a current pay rate of 5.74 per cent. “This product carries no early repayment charges and a £799 arrangement fee. Unlike most of The Mortgage Business products, this is free from a higher loan charge up to 85 per cent, whereas the HLC normally triggers at 75 per cent. There are also flexible features on this product,” he says.

Discussing the potential drawbacks of this deal Sharma says: “The maximum loan size is rather restrictive at only £500,000, whereas most lenders will now go up to £1m at 85 per cent. Probing a little deeper, it becomes obvious why the loan size is only £500,000, as the product is available as a true self cert product.”

Sharma explains that most lenders would require evidence of income, as well as the borrower being able to support their own mortgage and to show that the rental income will cover the mortgage on the rental property. “The Mortgage Business is one of the unique lenders who do not require any proof of income. That is the major unique selling point of The Mortgage Business.”

Although there are cheaper two year trackers on the market, such as Abbey at bank base rate plus 0.19 per cent and Alliance & Leicester’s base plus 0.35 per cent, Sharma says both of these deals are not available via true self cert. “To truly compare this product with another buy to let self cert lender, you would need to look at Platform who have a Base plus 0.6 per cent for three years with a £599 arrangement fee and also Capital Home Loans which has a rate of base plus 0.49 per cent for three years and a 1 per cent arrangement fee.

BROKER RATINGS

Suitability to market: Average
Competitiveness of rate: Average
Flexibility: Good
Adviser remuneration: Average

Overall 6/10

Recommended

FSA bans firm for leaving customers without insurance

The FSA has banned ICM Group from carrying on regulated activities after it found the firm had left around 300 customers potentially without insurance by failing to pass on client premiums to insurers. ICM had used client money to run the daily activites of its business and the FSA has banned the company’s two directors […]

House mates

Annie Shaw reports on the growing trend for friends and strangers to band together to get a mortgage

Lenders are arrogant over payment cover, claims Carr

Lifesearch head of protection strategy Kevin Carr has accused the mortgage industry of “arrogance” over payment protection insurance. He claims that lenders have washed their hands of responsibility after the Council of Mortgage Lenders expressed its surprise last month that MPPI was referred to the Competition Commission along with the rest of the PPI market. […]

Budget summary – March 2016

This week’s Budget looked as if it would be a difficult one for the Chancellor, with disappointing economic numbers and the need to avoid ruffling feathers ahead of June’s in/out referendum. Nevertheless, Mr Osborne did spring a few surprises, including some tax reductions. So how does this budget affect you? If you are – or […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com