The rate is 4.89 per cent (Bank Base Rate plus 0.39 per cent) and the rental payment is calculated on an interest-only basis at the pay rate. There is an arrangement fee of 1.5 per cent which can be added to the loan and no higher lending charge. The maximum loan is £1 million per property while the minimum is £25,001.
The maximum number of properties is ten per portfolio with total borrowing of £2.5 million up to 75 per cent LTV and £1 million up to 85 per cent LTV. ERCs apply at 5 per cent of the capital amount for three years. The net broker commission is 0.50 per cent – a minimum of £150 and maximum of £4,500 which applies for online applications only.
Nic Ekin, lender relations manager at Pink, said: “This tracker offers an excellent deal for the BTL investor, not only offering a competitive rate for the life of the loan but also taking advantage of the competitive rental calculation at the pay rate of the mortgage.”
Lee Grandin, managing director at Landlord Mortgages, said: “Just when you think that BM Solutions has delivered the best that it can, it comes back with another fantastic product and who delivers it best? Pink, of course.”
Mike Fitzgerald, sales director at Brentchase Financial Services, said: “With rental yields softening slightly, anything that helps brokers place buy-to-let mortgages is a positive thing. Any product that calculates rental payments at the pay rate is good. The 1.5 per cent fee is quite the norm although it would have been outrageous a little while ago.”
