The BTL mortgages, funded by Mortgage Express, include a discount of 1.26 per cent for three years, with an initial pay rate of 5.24 per cent and a 1 per cent completion fee. A discount of 1.51 per cent for three years with a initial pay rate of 4.99 per cent with a 1.5 per cent completion fee, is also available.
Both products are up to 85 per cent loan-to-value (LTV), have early redemption charges (ERCs) of 5 per cent in the first three years, and carry no higher lending charges (HLCs). The mortgages also come with free valuation fees and have a £40,000 minimum loan.
The mortgage products are available exclusively to members of the Mortgage Next Network and directly authorised (DA) brokers registered with Mortgage Next Partners.
Mortgage Next’s marketing director, Justine Tomlinson, said: “Compared to this time last year the BTL market is vibrant, driven by strong rental demand that shows little sign of subsiding.
“With pay rate starting from 4.99 per cent, these buy-to-let mortgage
products are highly competitive and also include a free valuation. I’m sure they will be popular with both intermediaries and borrowers.”
Brian Poole, mortgage adviser for A M Ruthven & Associates Ltd, said: “It’s hard to comment without seeing all the associated fees. But generally, I have noticed that a lot of buy-to-let fees are increasing, because mortgage lenders are cutting rates and trying to recoup the money in other ways. This product isn’t dramatically different to anything else currently in the market. On the face of it, people may be attracted by the rates, but not realise there may be hefty fees that come with it.”
