The limited period five-year fixed rate deal starts at 6.49%
Cambridge & Counties Bank has introduced a limited period five-year fixed rate mortgage, specifically designed for residential landlords.
Rates start at 6.49%, depending on the arrangement fee paid, with loan-to-value ratios up to 75%. The minimum loan value is £750,000.
The lender said the new product is a response to increased inquiries from clients and commercial finance brokers. The fixed rate mortgage offers landlords certainty on future payments, aiding cash flow and investment planning. This predictability has driven demand among property professionals.
Cambridge & Counties Bank said it has experienced sustained demand, exemplified by a recent £3.25 million loan to a London-based property team for refinancing two freehold residential properties in North West London.
The Leicester-headquartered bank also recently announced that it had hit its highest ever level of gross new lending in 2023 at £328 million, up 6% year-on-year. Overall, total customer loan balances increased 5% to £1.11 billion, while customer deposits rose to £1.16 billion, also up 5%. The balance sheet strength resulted in the bank recording £40.9 million in pre-tax profit, up 44% versus 2022.
“While we offer competitive fixed rates on commercial and residential products, this is the first time we’ve published a limited period fixed rate targeting residential landlords,” said Jayne Follows (pictured), head of real estate finance at Cambridge & Counties Bank. “One benefit is it can mean rental income grows relative to borrowing costs, which are fixed for a set amount of time.
“The move underscores our focus on working with clients and brokers to help them capitalise on market opportunities with a range of dedicated lending options.”
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