The 5 year fixed rate product also uses the pay rate of 4.39% to assess rental yield rather than the notional rate.
New product details are:-
• 2 year fixed rate at 3.69% (down from 3.99%). ERC 3%/2%
Rental yield based on notional rate of 5.25%
• New 3 year fixed rate product at 3.89%. ERC 3%/2%/1%
Rental yield based on notional rate of 5.25%
• 5 year fixed rate at 4.39%. ERC 5%/4%/3%/2%/1%
• Rental yield based on pay rate of 4.39%
• Variable rate at LIBOR +3.41%. ERC 3%/2%
• Rental yield based on notional rate of 5.25%
According to Business Development Director, Paul Brett, the 3 and 5 year fixed rate products fill a significant gap in the product range.
He said: “We have reduced rates on products and also introduced a new 3 and 5 year product, which our introducers had identified as an important addition we needed to make. By allowing the rental yield calculation of 4.39% rather than the notional rate, we believe this will allow more customers to benefit from our compelling lending proposition. I believe that introducers will be delighted by these changes, which will appeal to more landlords looking to lock into a longer term product.”
