The offer, available for purchases and remortgages, allows borrowers to save up to £465 on the valuation costs of each property.
The free valuation promotion applies to Capital Home Loan’s three-year Bank of England Base Rate plus 0.49 per cent BTL tracker mortgage and is applicable on properties with a maximum value of £500,000 per property.
Mike Healy, head of sales at CHL, said: “We know that this promotion is exactly the sort that appeals to landlords, especially when you consider that it is has an extremely competitive rate. We had record interest the last time we offered free valuations and are expecting the same level of response this time around.
"Landlords stand to save thousands of pounds with this offer. We are introducing it in response to popular demand and believe that landlords stand to save thousands of pounds the more properties they remortgage with this product offering.”
But for Brian Poole, mortgage adviser for financial adviser firm AM Ruthven & Associates, the free valuation offer has to suit his client’s circumstances.
He said: “The free valuation is not unique and we would only use it depending on whether it was the best deal for our customers. The deal is among the better ones on the market, but it is a case of swings and roundabouts. A mortgage deal with a higher interest rate can work out to be cheaper after calculating the total costs, and vice versa, with a lower interest rate.”
There is no extended tie-in beyond the discounted period of the mortgage term and borrowers can repay 20 per cent of the amount outstanding each year without incurring any penalty.
There is a 6 per cent early repayment charge (ERC) payable if the mortgage loan is redeemed before 31 July 2009. The product comes with an unlimited standard 0.5 per cent proc fee based on the sum advanced.
