Following discussions with brokers and consumers and a review of the market, GEMHL has taken the decision to offer a BTL proposition, under its First National brand.
Aimed at those already active in the market, the product is available at 100 or 120 per cent rental income. A three-year fixed rate product available at 5.39 per cent with no higher lending charge will be launched as part of the deal.
As part of the launch, set for 15 November, First National will launch exclusives with the Regulated Alliance of Mortgage Packagers (RAMP), Pink Home Loans, TMT and Optoma Broker Solutions. Rental cover of 100 per cent will be available, with a three-year fix available at 5.49 per cent.
Announcing the launch of the range, Gerry Bell, head of mortgage marketing at GEMHL, said: “Consumer demand in the BTL sector has been phenomenal and we realised it was a market we should look into. We wanted to provide a degree of flexibility within the products and give the borrower a choice.”
He added: “The combination of 100 per cent rental cover, loan-to-value up to 90 per cent and a competitive pricing of the product should appeal to the market.”
Mike Lloyd, head of sales at Mortgage Bureau UK, said: “If lenders are going to launch into the BTL market then they have to bring something new or niche to the table. More lenders are offering a 100 per cent option, so this isn’t anything new.”
He added; “It is very hard to base a new proposition on product alone, and although there is room for new lenders in this market, they have to offer something different to make an impact.”
