The buy-to-let (BTL) product offers a rate reduction of 10 basis points on Platform’s three year, conforming BTL tracker, together with a £750 cash back with an application fee of £999 that can be added to the loan to a maximum of 90 per cent loan-to-value (LTV).
The PMPA exclusive product tracks bank base rate (BBR) at + 0.60 per cent at 75 per cent LTV; + 0.70 per cent at 85 per cent LTV and + 0.95 per cent at 90 per cent LTV. Current pay rates are 5.60 per cent, 5.70 per cent and 5.95 per cent respectively. The term of the tracker is three years from the date of completion after which the reversionary rates are BBR + 2.0 per cent up to 85 per cent LTV and BBR + 2.25 up to 90 per cent LTV (reversionary rates are currently 7.0 per cent and 7.25 per cent respectively).
The rental assessment calculation on the three year trackers is 125 per cent based on the pay rate and the maximum loan size per property, for purchase or remortgage, is £1 million at 75 per cent LTV, £500K at 85 per cent LTV and £300K at 90 per cent LTV. The maximum portfolio size is £3 million total lending, with a maximum of 25 properties. There are no higher lending charges and early repayment charges are 5 per cent of the amount redeemed in the first three years and 1 per cent or one month’s notice thereafter.
Helen Hymos, lender relationship manager at PMPA, said: “Despite the recent 0.25 per cent rise in BBR Platform's BTL three year tracker rates are still a cheaper option than the lender’s full term tracker. PMPA’s extra 0.10 per cent reduction will make this popular product even more competitive and it should appear at the top of sourcing systems’ lists under relevant filtering choices. There are few options in the marketplace for BTL customers who are looking for a cash back deal, so the £750 cash back really helps this PMPA exclusive to stand out from the crowd.”
Richard Beardshaw, head of sales at Platform said: “We are delighted that our consistently strong relationship with PMPA has enabled us to work together to bring this new exclusive product to market. With the cost of fixed rate money rising recently, tracker products may well improve in popularity, despite the recent increase in the Bank of England BR this new product offers BTL customers a viable alternative which should prove extremely popular.”
