The Professional Mortgage Packagers Alliance is offering an exclusive from Platform.
The exclusive product offers a rate reduction of 10 basis points on Platforms three year, prime buy-to-let tracker, together with a 750 cash back with an application fee of 999 that can be added to the loan to a maximum of 90% LTV.
The PMPA exclusive product tracks BBR at +0.60% at 75% LTV; +0.70% at 85% LTV and +0.95% at 90% LTV.
Current pay rates are 5.60%, 5.70% and 5.95% respectively. The term of the tracker is three years from the date of completion after which the reversionary rates are BBR + 2.0% up to 85% LTV and BBR + 2.25 up to 90% LTV (reversionary rates currently 7.0% and 7.25% respectively).
The rental assessment calculation on the three year trackers is 125% based on the pay rate and the maximum loan size per property, for purchase or remortgage, is 1m at 75% LTV, 500,000 at 85% LTV and 300,000 at 90% LTV.
The maximum portfolio size is 3m total lending, with a maximum of 25 properties. There are no higher lending charges and early repayment charges are 5% of the amount redeemed in the first three years and 1% or one months notice thereafter.
Helen Hymos, PMPAs lender relationship manager, says: Despite the recent 0.25% rise in bank base rate Platform’s buy-to-let three year tracker rates are still a cheaper option than the lenders full term tracker.
PMPAs extra 0.10% reduction will make this popular product even more competitive and it should appear at the top of sourcing systems lists under relevant filtering choices.
There are few options in the marketplace for buy-to-let customers who are looking for a cash back deal, so the 750 cash back really helps this PMPA exclusive to stand out from the crowd.
Richard Beardshaw, head of sales, Platform says: We are delighted that our consistently strong relationship with PMPA has enabled us to work together to bring this new exclusive product to market.
With the cost of fixed rate money rising recently, tracker products may well improve in popularity, despite the recent increase in the base rate, and this new product offers buy-to-let customers a viable alternative which should prove extremely popular.