Hampshire Trust Bank (HTB) has launched a ‘Flex’ tracker mortgage, a 2-year discounted tracker across the bank’s buy-to-let (BTL) and semi-commercial offerings.
The product is available from today (28th February) as a limited edition, and offers the benefits of a tracker mortgage plus the ability to either sell the property or lock into a fixed term within the 2-year discount period, without incurring early repayment charges (ERCs).
The product was designed to give investors and developers increased flexibility in the short-term.
Clients will have three options, to either track, fix or sell.
If they opt to track, the 2-year discounted rate enables borrowers to take advantage if interest rates are reduced.
If they fix, borrowers can swap onto a HTB new business fixed rate at any time, at no charge.
If this is within the 2-year discounted period, the ERC on that product will be waived.
Finally, if the borrower wishes to sell the property during the 2-year discounted period, the ERC will again be waived.
The mortgage tracker is available up to a maximum net loan-to-value (LTV) of 75%, with BTL rates starting from 7.80% for Fee Plus, 8.80% for ERC Plus and 9.30% for ERC Lite.
Rates start from 8.00% for Fee Plus, 9.00% for ERC Plus and 9.50% for ERC Lite across semi-commercial.
Chris Daly (pictured), managing director, specialist mortgages at Hampshire Trust Bank, said: “We’re committed to innovation, and our new flexible mortgage tracker is a bold step forward.
“Driven by broker feedback and a desire to try something new that will genuinely add value for brokers, we’ve reimagined a conventional tracker to be more flexible.
“This product will appeal to developers who are happy to tenant new developments, before selling down over time as well as giving existing investors the ability to track, fix or even sell during the initial term depending on their needs.
“The short-term flexibility it offers allows borrowers to adapt to changing personal and market circumstances, recognising that we can’t always accurately predict the future.
“By empowering investors and developers with better strategic decision-making tools, this tracker enables them to navigate uncertainty, effectively.”
