The interest rate is Bank Base Rate (BBR) plus 0.99% and the term is three years from the date of completion, after which the rate reverts to BBR plus 1.24%. The product is available for purchase and remortgage to a maximum loan-to-value (LTV) of 85%, and the rental multiplier is 115% at the initial pay rate. Maximum loan size on any one property is £1 million at 85% , with a maximum overall borrowing limit of up to £5 million per borrower. Early repayment charges of 5% of the redeeming balance apply during the term of the tracker rate. The PMPA member firms will also include further incentives on this product such as free valuations and cash-backs.
Helen Hymos, lender relationship manager at PMPA, commented: “The CHL tracker is a very attractive rate and helps to maximise the loan amount with its low rental yield calculation and makes it a good alternative to the higher fixed rates in the market place. CHL offers online binding DIPs, allows loans to limited companies, and also allows niche properties – for example up to 10 flats in a block and properties in multiple occupation – that are not widely catered for by other BTL lenders. All this and their simple criteria make a great opportunity for brokers to find solutions for their entire BTL cases, via PMPA member packagers. Our members are doing additional incentives on this product so that intermediaries can find the one that best suits their customer’s needs."
