The products are capped at 1 percentage point above the initial rate and are available in either low rate/high fee or high rate/low fee options.
It also believed it was the first major BTL lender offering such products in the marketplace.
Tim Hague, director at BM Solutions, said: “We are the first major lender to offer capped rates on BTL products, giving customers even more choice. Landlords can now be confident of their maximum monthly repayment throughout the term of their deal.”
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The two-year products are priced at either 4.49 per cent or 5.49 per cent with a 2.5 per cent arrangement fee or £799 fee respectively. On the three-year deals, the rate is either 4.99 per cent or 5.79 per cent with the same choice of fees.
All products are based on 100 per cent rental income and are available up to 85 per cent loan-to-value.
Simon Chalk, mortgage planner at Mortgage Portfolio Services, said: “I like capped rates and with the turbulence in the money markets at the moment, the theory is great. However, I think the caps are a bit too high at 1 per cent above. I may do the 4.49 per cent and the 4.99 per cent but it would be hard to look at the others as you’re looking at 6.49 per cent.”
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