New product offers interest-only loans on investment properties
Mortgage lender TAB has introduced its latest offering, a residential investment mortgage product, expanding its presence in the residential market.
The newly launched product provides property investors with interest-only loans for buy-to-let and various other residential investment properties, such as houses in multiple occupation (HMOs), holiday lets, and Airbnbs, with funding of up to £2.5 million and terms ranging from three to 10 years. Borrowers can access loans with loan-to-values (LTVs) of up to 70%.
Designed to attract sustainability-conscious property investors, TAB’s residential mortgage product incentivises adherence to environmental, social, and governance (ESG) criteria by offering significant discounts. These discounts include a 100% reduction in exit fees of 1% for investors meeting specified ESG benchmarks.
Discounts include up to 0.50% off for enhancements in energy performance certificate (EPC) ratings, with incremental reductions for improvements ranging from ‘D’ to ‘C’, ‘D’ to ‘B’, and ‘D’ to ‘A’ ratings.
Additionally, implementing sustainability measures, such as installing electric vehicle charging points, efficient waste management systems, and utilising eco-friendly materials, can earn investors a 0.25% discount. Furthermore, investors contributing to social outcomes aligned with the United Nations Sustainable Development Goals, such as leasing properties to social enterprises, charities, or adult learning initiatives, can receive an extra 0.25% discount.
The launch of the new mortgage product follows TAB’s completion of a private securitisation facility valued at £300 million in October 2023, in partnership with NatWest and Atalaya Capital Management. The facility is earmarked to bolster TAB’s support for all its lending products.
“We are delighted to unveil our latest offering, the TAB Mortgage: Residential Investment product, marking a significant evolution in our commitment to serving the diverse needs of property investors,” Duncan Kreeger (pictured), chief executive and founder of TAB, said.
“As we expand our portfolio, the TAB Mortgage: Residential Investment is not just another mortgage; it’s a tailored solution that reflects our dedication to providing flexible products that meet the diverse needs of customers.”
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