View more on these topics

CHL unveils 90% B2L deal

CHL Mortgages has joined edeus and GE Money Home Lending by launching a 90% LTV buy-to-let mortgage.

Fixed at 5.59% for two years, the product has 115% rental cover based on the pay rate. On top of this it offers no personal minimum income requirement, no income checks, lending on up to 25% of flats within a block and limited company lending.

There is no higher lending charge but the product has a 6% early repayment charge that applies until October 31 2008. The proc fees is uncapped at 0.5%.

After maturity the product reverts to 1.65% above Bank of England base rate and there is a completion fee of 1.25% of the advance.

This product launch comes on the back of GEMHL’s foray into the 90% LTV buy-to-let arena.

Trevor Child, head of sales and marketing at CHL Mortgages, says: “Some market commentators are predicting a number of base rate rises in the months ahead so fixed products are coming into their own.

“This one represents good value because it has a competitive interest rate, 90%LTV and 115% rental cover based on the pay rate.”

Melanie Bien, associate director at Savills Private Finance, says: “The LTV on this deal is great. It gives landlords an opportunity to maximise their cash flow. The rate is higher than you would pay for a lower LTV but landlords need to calculate whether it is worth it to borrow that amount.

“The fee is in a bit high for this rate compared with other buy-to-let products but otherwise it’s not a bad deal.”

Recommended

Out of commission come many virtues

The Financial Service Authority’s decision to consider commission in its retail distribution review is no great surprise. The FSA wants to consider whether the model harms the reputation of advisers. It wants to know why financial advisers are not held in the same public regard as solicitors and the like. Could this be because of commission?

If Paymentshield lives by the sword it will die by the sword

From Lee Martin I read with interest Harry Katz’s recent letter in which he sounded off like a fully-fledged member of the Paymentshield appreciation society in response to Eddie Royce’s earlier questioning of Paymentshield’s attitude towards terminating trail commission when an adviser closes its agency or retires. Everyone in this industry who uses Paymentshield knows […]

Online reporting system for D&D

D&D Homecare has launched an online reporting system for its standard ASU policies and its new three4free products. The system will instantly show brokers their monthly and single premium policies as well as commission reports and details on all their policies, whether live or in the pipeline.

Lead generation is about quality rather than quantity

From Hugo Craggs Having just read the leader in last week’s issue on the subject of lead generation, I have a few observations to make. The first paragraph states that to ensure to a steady pool of new clients a broker must either obtain leads from their own website or via a lead generator. But […]

Newsletter

News and expert analysis straight to your inbox

Sign up