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.”