Available through Savills Private Finance, the product coincides with a review of the lenders fixed rates.
Chelsea’s BTL ex-pat product is available at 5.39 per cent, fixed until September 2008. An arrangement fee of £645 exists, with an early repayment charge (ERC) of 4 per cent in operation until September 2008. The ex-pat BTL is available up to 80 per cent loan-to-value (LTV), with a minimum loan set at £35,000, its maximum reaching £2 million. The BTL two-year fixed rate has a rental requirement based on 120 per cent of initial pay rate, which is calculated on an interest-only basis.
Tom Gurrie, head of intermediary sales at Chelsea, admitted the lender had been examining the ex-pat market for some time, following take-up of its BTL range, and believed now was the time to launch. He said: “Chelsea’s BTL market is thriving, so expanding into the ex-pat market is a logical step.”
Phil Perry, director at ARK Financial Services, said the offer would appeal to borrowers, with the ex-pat market continuing to grow. He said: “The product seems quite good. The fees are a little high, but this matches the BTL market where fees tend to be a little higher. The ERC doesn’t really come into it, and the 80 per cent LTV is quite high.”
As part of its product review, Chelsea Building Society has also adjusted its fixed rate range. Its two-year fixed rates are available at 4.69 per cent up to 95 per cent LTV. A fees assisted BTL fixed rate remortgage is also available at 5.75 per cent, with no valuation fee paid by the customer.
