The new game-changing product launched by Precise Mortgages can be used for a loan up to £500,000, although the lender will look at a larger loan size once the initial performance of the product is reviewed.
The product, which is available in England and Wales and also offers a valuation refund with no maximum value, also includes:
• Lifetime tracker product
• Three and four year ERC option
• Zero product fee
• 80 per cent LTV
• Free remortgage Legal service
• Available to all distribution
Commenting on the product launch, Alan Cleary, Managing Director of Precise Mortgages said: “This is all about choice. For property investors who want to keep upfront fees to a minimum in return for paying a higher interest rate, this represents excellent value for money. Paying upfront fees reduces cash flow which could potentially be put to better use on the investor’s next project, for example.
“Up until now, property investors would have been paying a typical two per cent fee for the bridge and a further two per cent on the buy-to-let loan - now they have a choice.”
Rates for the product start at 4.79 per cent, depending on the ERC.
|
LTV |
Rate |
Product Fee |
ERC |
Features |
|
80% |
4.79% |
£0 |
3%, 2%, 2%, 2% |
Refund of valuation and free legal package |
|
80% |
4.99% |
£0 |
3%, 2%, 1% |
Refund of valuation and free legal package |
Even though it is a standalone product, it can also be used alongside Precise’s 0 per cent product fee bridging product, giving property investors the choice of keeping fees to a minimum.
For example, a £245,000 bridging loan is used on a £350,000 property at 70 per cent LTV, and now the premises is in need of a light refurbishment. Once the refurbishment works are complete, the borrower can switch to the 0 per cent product fee Buy-to-Let product at up to 80 per cent LTV of the post works valuation.
|
|
Bridging Loan 70% LTV |
Buy to Let Loan 80% LTV |
|
Facility/Arrangement Fee |
£0 |
£0 |
|
Interest Rate |
1.30% per month |
4.79% per annum |
|
Valuation Fee |
£350 |
£0 (refunded on completion) |
|
Legal Fees |
£750 |
Free legals |
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