Specialist lender Cambridge & Counties Bank has launched a limited period 5-year fixed rate mortgage aimed at supporting residential landlords. The product is being introduced in response to increased enquiries from clients and commercial finance brokers.
Rates are available from 6.49%, depending on the arrangement fee paid, with loan-to-value rates of up to 75%. The minimum loan value is £750,000. One of the key benefits of this product is that it offers a high level of certainty on future payments for residential investors and landlords, which can aid in cashflow and investment planning.
Fixed rate loans have continued to attract property professionals. Cambridge & Counties Bank has seen sustained demand, including a recent £3.25m loan to support a London-based property team refinance against two freehold residential properties in North West London.
Jayne Follows, head of real estate finance at Cambridge & Counties Bank, said: “While we offer competitive fixed rates on commercial and residential products, this is the first time we’ve published a limited period fixed rate targeting residential landlords. One benefit is it can mean rental income grows relative to borrowing costs, which are fixed for a set amount of time.
“The move underscores our focus on working with clients and brokers to help them capitalise on market opportunities with a range of dedicated lending options.”
