Instead, the deal, a lifetime tracker which is available on remortgages up to 65 per cent loan-to-value (LTV), bases the decision on the valuation of the property.
Paul Marland, AGM intermediary sales at West Brom, said it was confident with the risks involved in offering such a product: “We have done a lot of work on AVMs and when we compared the results of AVM and survey valuations, we saw there were not too many discrepancies up to 65 per cent LTV. Therefore, we are very happy that below 65 per cent is not a big risk"."
The lifetime tracker is priced at BBR + 0.59 per cent and is available on property up to £500,000. There are free legals available, an arrangement fee of £549 and there is no early repayment charge period.
Marland admitted it might push back the LTV criteria in the future: “If the experience is good and it will stand alone on the valuation then 65 per cent LTV isn’t the maximum but we will move forward in small increments.”
Michael Brill, director at Baronworth Investment Services, commented: “There are not many 65 per cent LTV BTLs around but for those that are, this is an excellent scheme. It is slightly risky if you don’t know what the rental income is, but what I do like is there are no penalties if you want to move and the rate is very competitive.”
