The two and three-year fixed rates are in the near prime and near prime max categories, with rates starting from 5.95 per cent and both ranges specifying that the gross rental income must be 100 per cent of the pay rate.
The near prime BTL range offers loans up to 90 per cent loan-to-value (LTV) up to £300,000 and allows up to £500 County Court Judgements (CCJ’s) per applicant. Whilst the near prime max category allows up to £1,000 CCJ’s per applicant and up to one mortgage arrear or missed secured loan or rent payment in the last 12 months and is available up to 85 per cent LTV for loans up to £400,000.
All of the products in the ranges offer a range of flexible benefits including; overpayments up to 10 per cent per annum, underpayments and payment holidays.
David Copland, deputy managing director of Pink Home Loans, commented: “According to the Council of Mortgage Lenders, in 2006, the BTL sector grew faster than the market as a whole, increasing by 48 per cent in volume (330,000) and 57 per cent increase in value (£38.4 billion) since 2005. This sector still presents a huge opportunity for the intermediary and with rising interest rates, this range of competitive fixed rate exclusives, funded by Kensington Mortgages, should present an excellent investment potential for their clients.”
Ian Finan, head of direct distribution at Kensington Mortgages, added: “There continues to be real opportunities presented by BTL, but with house prices continuing to increase, interest rates rising and rental yields remaining fairly static, it is becoming much harder for new investors to enter the market. Kensington have recognised this and, together with Pink, we have launched this reduced rental income exclusive to help borrowers get more from their investment. We look forward to working with Pink to ensure our customers don’t just receive a great deal, but outstanding service as well, and we look forward to more exciting developments in the future.”
