The rental calculation will be based on 120% at the pay rate.
Key product features include:
• Two-year discounts based on loan-to-value (LTV):
up to 75% LTV: 5.63% (1.36% discount)
up to 80% LTV: 5.73% (1.26% discount)
up to 85% LTV: 5.83% (1.16% discount)
• Reversion rate: currently 6.99%
• Loans up to £1 million to 75% LTV (£500,000 to 80% LTV & £400,000 to 85% LTV)
• Rental calculation: 120% based on the pay rate
• Early repayment charge: 5% of amount repaid in years 1 & 2
• Higher Lending Charge: none
• Completion Fee: £545
• Procuration Fee: 0.5%
Freedom Lending marketing director Mel Dring said: “Two-year discounts are a popular product in this sector of the market, but have not been widely available in recent months. This product offers a combination of competitive rates and attractive criteria based on a rental calculation of 120% at pay rate. I have no doubt this will be popular with both brokers and borrowers.”
