Capital Home Loans has launched a buy-to-let tracker mortgage at Bank base rate plus 0.65% with a completion fee of 0.5%.
The lender is targeting the tracker, which is tied to base rate plus 0.65% until June 2007, at landlords who may have been involved in buy-to-let for some years and who require LTVs up to 65%.
Trevor Child, marketing manager at Capital Home Loans, says: “There is a large and growing body of landlords who have had a successful portfolio of properties for some years and are looking at lower LTVs to secure reduced interest rates. They have accumulated significant positive equity in their properties and want to take advantage of this.”
The Bank base rate plus 0.65% rate is only available for LTVs up to 65%. LTVs up to 75% are available at a rate of base rate plus 0.75%, also with a half a percent completion fee. Rent cover is calculated on the actual rate taken, which is currently 4.9% in the case of the 0.65% tracker.
Borrowers can pay off 20% of the original loan per annum without charge. No MIG is payable. There is a 5% redemption penalty during the term of the tracker, but no extended tie-in.
The tracker is available to individuals and limited companies. The uncapped procuration fee is 0.5%.