The firm introduced the product with an initial one-year fixed rate of 5.69 per cent, followed by Base Rate plus 0.74 per cent for the rest of the term, reverting to Base Rate plus 0.95 per cent for the remaining term.
It is available at 90 per cent loan-to-value and with a free valuation, and early repayment charge of 5 per cent in the first three years and an arrangement fee of £595.
PMS managing director, John Malone, said: “This product shows the innovation that Astra Mortgages is bringing to the BTL market utilising the risk pricing model that it employs which embraces the Basel II wavier that its parent company, Norwich And Peterborough Building Society, was the first to obtain within the UK.”
Stewart Hunter, Astra Mortgages’ head of introduced sales, commented: “This product gives the benefit of a secure first year’s repayments and for those who believe rates will then fall, the expectation of mortgage costs following the downward trend in rates”
Lee Grandin, managing director of Landlord Mortgages, said: “This is fairly standard as there is only a certain amount of money in the pot, and with so much competition in the marketplace it is not just down to products it is about understanding BTL. It will be no more popular that what is already out there.”
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