The two-year tracker mortgage rates are 0.99 per cent above Bank Base Rate (BBR) to 75 per cent loan-to-value (LTV) and 1.24 per cent above BBR to 85 per cent LTV. Further features of the product include rental calculations of 100 per cent of initial rate and 110 per cent for multiple properties.
A builder’s deposit of up to 15 per cent is also available, with no higher lending charges (HLCs) and no secured arrears in the last 12 months. The offer also includes an intermediary procuration fee of 0.4 per cent.
Ian Nelson, chief executive of Unity, said: “We look for gaps in the criteria of other lenders and design products to fill those niches. We decided to create this product after requests from brokers that it was something they would like us to do. The product is just a pilot at the moment, but we have been getting great feedback from PMPA members about it.”
However, Roy New, a sole broker, said: “Some of the criteria is good. It’s a good tracker rate and 100 per cent rental yield is excellent, but I think it could have done better with the fees and made it fairer to the client. I think a 1 per cent arrangement fee, which many lenders charge, as well as charging an early redemption fee, is greedy. I think there are better products out there.”
The launch of the product comes alongside Unity Homeloan’s planned expansion of its business, with the recruitment of business development managers (BDMs) – a move it had not previously considered – and more underwriters. Unity said its goal is for every PMPA member to have an in-house underwriter.
