The rates range from 4.95 per cent on the residential prime products, to 7.45 per cent on the buy-to-let income-based product at 90 per cent loan-to-value (LTV). There is an early repayment charge (ERC) of 6 per cent within the fixed rate period.
Mark Bergin, director of sales and marketing at db mortgages, said: “The fixed rate products launched via our three pilot packagers are competitive and demonstrate our commitment to the pilot scheme, offering brokers a more diverse choice for their customers.”
Discussing db mortgages’ buy-to-let rental based prime product, Ray Boulger, senior technical manager at John Charcol, said the rental cover, maximum number of properties and maximum facility limit were good starting criteria. He also hailed its two-year fixed rate at 90 per cent LTV product.
However, Boulger added there were some limitations to the product. “Being a totally new lender coming into the market, db mortgages has the opportunity to start from scratch. While there are some good features across its product range, there are also a number of features that are disappointing,” he said.
“Offering 90 per cent LTV on purchase only and not on remortgages is unhelpful to consumers. I think someone who is remortgaging with a track record is no greater a risk than a new buyer with no purchasing history at all.”
Boulger also commented on the lender’s tracker rates. He said: “They are not particularly competitive compared to other two and three-year trackers, and in the wider scheme of things, it may benefit the borrower to pay a slightly higher rate on a lifetime tracker.”
