The product, which is also available from CHL’s Irish Permanent brand, is fixed until 31 October 2008. At the end of the fixed-rate period it reverts to Bank Base Rate plus 0.99% for the remaining term.
It is available to individuals and limited companies, with student lets and houses divided into self-contained flats permitted. The maximum loan size is £2m and no accounts are required. Maximum loan-to-value is 85% and rental cover is 125% of the mortgage payment calculated at the 4.95% pay rate*.
Mike Healy, Head of Sales for Capital Home Loans, said: “This is probably the best fixed-rate buy-to-let mortgage in the marketplace at the current time. It is especially attractive where rent yields are tight, given that the rental cover is based on a low 125% calculated at the 4.95% pay rate. This means that it is particularly good for lower-yield properties. The very low rate after maturity is one of the product’s key selling points. Our competitors have roll-off rates in excess of BBR plus 1.95% once the tie-in expires.”
There is no tie-in beyond the fixed-rate period, at which stage borrowers can switch to a new product. The standard procuration fee payable is unlimited at 0.5% of the sum advanced and there is no higher lending charge. The completion fee of 1.5% can be added to the loan, which can be used for purchase and remortgage.
A 5% early repayment charge is payable until 31 October 2008.
