Stressed at pay rate, the deal has a rate of 4.8% and an arrangement fee of 9.99%
Specialist lender West One Loans has launched a new sub-5% buy-to-let five-year fix stressed at pay rate, allowing landlords to achieve higher loan-to-values (LTVs) in a higher rate environment.
Priced at 4.8%, the new deal has a 9.99% arrangement fee.
The launch of the new product means West One now has four fee categories – 2.5%, 4.99%, 7% and 9.99% – giving landlords a wide range of borrowing options.
West One said lower rate higher fee deals were becoming increasingly important, as higher interest rates cap loan sizes for many landlords.
“Given the pace at which rates have risen over the past 18 months, many landlords are finding they cannot achieve the loan sizes they want when they come to purchase or remortgage,” commented Andrew Ferguson (pictured), managing director of buy-to-let at West One Loans. “That is why we have introduced a new fee band, at 9.99%, which allows us to offer a new highly competitive and much lower five-year fixed rate priced at 4.8%.
“The lower rate combined with the fact we will stress this deal at pay rate means landlords without the required levels of capital can still achieve the LTV they need. We encourage brokers to check out the leverage benefits on our various product fee options, and work with their clients to find the right option to meet their needs. The increased lending available on the high fee options can be quite substantial and will work well for customers for whom leverage is key.
“We now have four different fee options for borrowers, each one coming with different rates, so we can cater for all types of borrower profiles. It’s important to provide brokers with choice currently to be able to support their clients’ individual circumstances in these challenging times.”
Meanwhile, West One Loans has also cut the vast majority of the products in its limited edition buy-to-let range by up to 38 basis points.
The specialist lender’s limited edition two- and five-year fixed rates now start at 4.9% and 4.8%, respectively.
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