It has launched a fixed rate and a discounted product to mark its latest phase of development. The fixed rate product has a 5.19 per cent rate until 30 November 2007 and the two-year discount is at 5.54 per cent variable. After the initial deals complete the rate reverts to 5.58 per cent for the remainder of the mortgage term.
In addition to the normal proc fee, intermediaries will receive £200 for every successful application submitted during the initial launch period. The arrangement fee is £399 and the maximum LTV is 80 per cent. The products are aimed at landlords with up to five properties in their portfolios.
Affordability is judged by the monthly rental income at least equalling 130 per cent of the monthly interest payment charged at the long-term rate.
Louis Kaszczak, national partnership manager at First Active, said: “Our focus for these two products is the remortgage market where we aim to emulate the success we have enjoyed in residential lending.
“We are launching exclusively through intermediaries as we believe their expertise is vital in the sales process.”
James Cotton, mortgage specialist at London & Country, commented: “This is a decent first offering if not market-leading rates. The low arrangement fee is a welcome feature but for these deals to really make a strong impact in the remortgage market it should be looking to include a free valuation and free legal work as it does with the residential range.”
