Pink Home Loans has launched a new, exclusive buy-to-let mortgage funded by Mortgage Express.
The product is fixed at 5.85% until September 3 2007 and is available up to 85%LTV.
Investors can use the exclusive 'choices' flexible feature to overpay up to double the monthly payment even during the five-year fixed rate period. The overpayment can be used to take a payment holiday at a later stage which can be useful if the property remains empty for a month or two in between lets and therefore no rental income is being received.
Tony Jones, managing director at Pink Home Loans says: “We would advise borrowers that a buy to let property should be part of a wider spread of investments and to take a long-term view. The choice of property and area is crucial to obtaining optimal results and researching the local housing and lettings market is crucial.”
The number of properties is limited by a maximum total borrowing of £1m with Mortgage Express, and the main applicant must have an income of at least £20,000, with a joint income minimum of £30,000.
The offer is available on loans of a minimum £50,000 and maximum of £1m up to 60% LTV and gross rental income must exceed 130% of monthly mortgage payment.
The product carries a redemption penalty of six months' interest at the fixed rate until September 3 2007 and an arrangement fee of £399.