Colin Snowdon, managing director of Freedom Finance’s lending operation, said: “I have enjoyed working with TBMC in this specialist market sector for many years and have experienced first hand its ability to package intermediary applications to a high standard."
"This, coupled with their strong distribution channels and ability to deliver quality business in required volumes, makes it an ideal partner choice for Freedom Finance," he said.
Will Wakely, director with TBMC, said: “We are delighted that Freedom Finance responded quickly to our initiative on this product and to have been selected to package a line of business in buy-to-let.
"We have known Colin for several years and are sure that this will be the start of a great relationship with Freedom, as it will add a new dimension to our existing panel of buy-to-let lenders.”
He added: "The key feature of the exclusive Freedom/TBMC product, is there is no requirement for a rental stress test and it certainly fills a gap in the market left by TMB’s recent withdrawal. It ensures that our intermediaries and network connections will not be left out in the cold.”
Will added: “The art of packaging in a specialist sector has been lost in the UK market. Too many packagers think they can be a jack of all trades and all too often, the saying ‘master of none’ is proven to be correct.”
Key scheme features include:
Rate: Bank base rate + 1.35 per cent tracker for five years, reverting to 1.99 per cent over BBR thereafter. Initial charge rate 5.85 per cent.
Max loan: £300,000
Min loan: £50,000
Max LTV: 85 per cent
Income: Affordability is calculated on self-certified income only (rental income can be added to the applicant’s total income).
Proc fee: 0.5%
Arrangement fee: £499
MIG: Charged from 75 per cent LTV at the rate of 7.5 per cent
Age limits: Min 18; max 75
Term: Min five yrs; max 40 yrs
Applicants: Up to two persons. No first-time buyers or limited companies
Redemption: 4 per cent repayable in year one, 3 per cent in year two, 2 per cent in year three, 1 per cent in year four then 1 per cent or one months notice thereafter
Loan type: Interest only or repayment, or a combination of both
