Cambridge & Counties Bank launches 5-year fixed rate mortgage for residential landlords
Specialist lender Cambridge & Counties Bank has launched a limited period 5-year fixed rate mortgage solely aimed at supporting residential landlords.
The 5-year product is being rolled out in response to heightened levels of 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 benefits of the product, and a key reason for the rise in market demand, is that such fixed-rate vehicles offer a high level of certainty on future payments for residential investors and landlords. In turn, this can help with cashflows and investment planning.
Fixed rate loans have continued to attract property professionals. Cambridge & Counties Bank itself has seen continued demand: a recent example includes a £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.”
