All have a maximum LTV of 85%. There are two new self cert products, the first is a two year tracker product at 0.19% above bank base rate, currently a pay rate of 4.69%. An arrangement fee of £1250 can be added to the loan. A complementary two year fixed rate product is also on offer at 4.99% with an arrangement fee of £799 that can be added to the loan, and there is no higher lending charge on this fixed rate option.
On both the TMB two year tracker and fixed rates, early repayment charges are 6% in years one and two and do not extend beyond the fixed and discounted rate term (31.07.08). Maximum loan sizes are £500K at 85%, £1million at 75% and £2million at 65%. Both options are available for purchase and remortgage to employed and self employed applicants, and TMB’s affordability calculation often produces higher loan sizes that the income multiples stipulated on other comparable products.
PMPA’s third new TMB exclusive is a two year self cert House to House (Buy to Let) tracker at bank base rate plus 0.59%, with a current pay rate of 5.09%. There are no higher lending charges and no early repayment charges on this product. The loan is based on self certified income so there is no rental yield calculation. The product is also available to first time buyers albeit proof of income would be required. The maximum loan size is £500K at 85%.
Jon O’Brien, operations director at the PMPA, said “With swaps on the rise we shall see many lenders withdrawing fixed rates and replacing them with more expensive products. This means that the new 4.99% fixed rate will become increasingly competitive. For high value loans at LTVs of less than 75%, the new TMB tracker has a very attractive rate, whereas the absence of a higher lending charge on the fixed rates makes it ideal for higher LTV loans. The House to House tracker product also offers exceptional value with no higher lending charge and no ERCs at all. Helen Hymos, PMPA’s lender relationship manager, continues to work closely with our panel lenders to design innovative products at market leading rates, to build PMPA as a single source of the best mortgage products from the top lenders. Watch out for more attractive exclusives from PMPA in the near future.”
