The year one rate is 4.99%, followed by 5.85% in year two, and 5.99% in year three. A 115% rent cover calculation is based on the first-year rate of 4.99%. There is no Early Repayment Charge overhang beyond the end of year three.
Trevor Child, head of sales and marketing, said: “This three-year fixed product has an average rate over the period of 5.60%. This, combined with the low 4.99% rent calculation rate at 115%, will ensure the success of this product.”
The year one rate matures on 31 July 2008, year two on 31 July 2009 and year three on 31 July 2010. There is a 2% completion fee that can be added to the loan. All standard BTL criteria applies, including CHL’s willingness to lend on 10 or 25% of flats in a block (whichever is the greater).
