The product is Bank Base Rate (BBR) minus 0.50% and carries a fee of £1,499 and a rental calculation at 125% of the pay rate. There is also a refund of the valuation fee. As an alternative there is a BBR minus 0.20% two-year tracker at 5.30% with a rental calculation at 110% of pay rate with a valuation refund and £1199 fee. Finally, there is a BBR rate product at 5.50% with a rental calculation at 100% of pay rate also with a £1199 fee and a valuation refund.
Mortgagebox is currently paying an additional 0.05% fee on all BM buy-to-let deals.
Dev Malle, sales director at Personal Touch, said: "It is very pleasing when a lender like BM listens to intermediaries and changes criteria so it reflects the demands of a changing market. Brokers have been crying out for a pay rate product from BM, as they know they can trust and rely on BM’s great service. In the current market a 5% pay rate with a reasonable fee should absolutely fly. The early signs have been superb for these market leading products.”
James O'Reilly, key account manager at BM Solutions, said: "These are fantastic products, backed by excellent service and at a time when most BM distributors are paying an additional 0.05% proc fee on BTL cases. BM has traditionally led the BTL market in both products and service so it should be no surprise we've moved to Pay Rate products when we felt the time was right."
