Fixed until October 2010, the product is available at 5.99 per cent and is being launched in conjunction with Bank of Ireland Mortgages.
The product includes a £499 arrangement fee, with a maximum loan-to-value of 90 per cent. The product has no early repayment charge overhang, and is available up to a maximum loan of £500,000. The rental calculation is based on 100 per cent of the 5.99 per cent fixed rate.
Dev Malle, director of mortgage distribution at Personal Touch Financial Services, said: “It is important that we continue to provide members with choice and one of the obvious gaps in our exclusive buy-to-let product range was a longer-term fixed rate. This product gives a competitive price at a time when swap rates have moved north. The criteria which allows the rental calculation to be based on the pay rate at 100 per cent and the arrangement fee to be added to the loan even at the maximum LTV of 90 per cent, makes it even more appealing.”
Kevin Purvey, head of sales at Bank of Ireland Mortgages, added: “Following our recent criteria enhancements we felt that offering a 90 per cent LTV product with a longer-term fix rate was a natural progression.”
Jas Jaspal, managing director of Oakwood Financial Management, said: “While many clients prefer short-term fixed and tracker buy-to-let products, there is clearly a growing demand for longer-term fixed products like this. The criteria, in particular the rental calculation, make it easier to place cases for buy-to-let clients.”
