- New Full Term Trackers launched -
It is also enhancing the terms applicable across its 'buy-to-let' range with a reduction in its rental
income calculation, from 130 per cent to 125 per cent.
The fact that the Bank of England base rate has been creeping upwards over the past year is making it more difficult for landlords to balance the rental income they receive with the loans they need to borrow, as rental yields haven't increased in line with interest rate rises. Platform is
maintaining its position by responding to these current economic conditions.
NEW FULL TERM TRACKER MORTGAGES - KEY FEATURES SUMMARY
Full Term Tracker 1 Full Term Tracker 2
* No early redemption charge * With early redemption charge
* Bank Base Rate + 1.35% for life of loan * Bank Base Rate + 0.99% for life of loan
* Maximum LTV = 85% * Maximum LTV = 85%
* Available to conforming borrowers * Available to conforming borrowers
REDUCTION OF RENTAL INCOME CALCULATION - SUMMARY
Platform is reducing its rental income calculation from 130 per cent of monthly repayments to 125 per cent on all conforming and non-conforming buy-to-let products.
This reduction has the effect of reducing the amount of rental income needed to meet the monthly repayments.
E.g. Currently, on a 5 year Tracker Mortgage of £100,000 at 5.65%, the monthly rental income required on 130% is £612. When this is reduced to 125%, the monthly rental income goes down to £588.
Guy Batchelor, Sales & Marketing Director at Platform, commented; "We have worked hard over the past eighteen months to increase our marketshare. The performance of our 'Buy to Let' loans has been exceptional and as interest rates have increased over the last 18 months, we want to be in a position where we can attract more business.
"We are clearly providing the products that our clients need and will continue to do so by watching the market carefully and responding accordingly. We also believe in providing choice in terms of products, at extremely competitive rates."
