Following GMAC-RFC’s launch of its latest tracker mortgage, James Carter, IFA at Virtue Financial, admitted there was currently a lot of interest for long-term and lifetime tracker deals within the BTL sector.
Carter said: “There are some very competitive tracker rates at the moment within the BTL market. As it is expensive to remortgage with BTL because of high discharge fees being added onto a lot of deals, long-term tracker mortgages are an ideal solution.”
“GMAC’s 5.24 per cent tracker rate is a pretty good deal and I have already conducted a lot of business because of this,” he added.
Cath Hearnden, director of My Mortgage Direct, agreed that the BTL resurgence could be pinned on the success of tracker options within the market. “There are a lot more people interested in tracker mortgages within BTL because the investors are usually more sophisticated and realise that following the Bank of England Base Rate is a good move,” she said. “However long-term tracker mortgages can be quite expensive initially to set-up.”
GMAC’s 5.24 per cent fixed-term tracker rate operates a loan-to-value (LTV) of 75 per cent with an arrangement fee of between £545 and £1,495, dependant on the rental assessment of the property.
The deal is for a minimum of five years and a maximum of 30 years with early repayment charges for the first three years decreasing from 4 per cent to 2 per cent. An 85 per cent LTV range at 5.49 per cent is also available.
