The tracker product offers a rate of 0.8 per cent over bank base for 4 years rate giving an initial pay rate of 4.8 per cent, plus free valuation.
Tony Jones, managing director at Pink Home Loans comments: “We would strongly urge borrowers who are thinking of purchasing one or more buy to let properties to view them as a long-term investment. This product offers a competitive rate for 4 years, however, if interest rates increase during this period, the investor can switch to a fixed rate product without incurring redemption charges.”
The product caters for borrowers wishing to purchase up to 3 investment properties, subject to a maximum total borrowing of £750,000.
During the initial period, borrowers can switch to any current buy to let fixed rate with the Derbyshire Building Society without paying the early redemption charges.
The product is accessed exclusively through Pink Home Loans by submission directly to the lender using a Pink sticker on the application form.
Pink Home Loans offers the facility of paying broker commission within 24 hours of legal completion if an express payment request form is completed and customers can also benefit from having broker commission paid directly into their bank account via BACS.
Key product details:
Rate: 4.8% - 0.8% above bank base rate
Underlying rate is bank base rate, currently 4%, plus 1.75%
Term: 4 years
Minimum loan: £30,000
Maximum loan/ maximum loan to value: Up to 80% LTV to £250,000
Rental yield: Gross rental income must exceed 130% of monthly mortgage payment calculated at SVR (currently 5.69%) on interest only basis
Arrangement fee: £475
Redemption fee: 2% of the amount repaid for 4 years
Conditions: Minimum income £25,000
Other: Free valuation, maximum of 3 properties
Introducer’s fee: 0.25% (min £150, max £500)
Contact: Visit Pink online at www.pink.uk.net for more information
