Some good news for BTL borrowers

mystic_trev

Birmingham Midshires, part of the HBOS group, has secured an exclusive distribution agreement with John Charcol, one of UK’s largest independent mortgage brokers.

John Charcol will market a new Birmingham Midshires tracker mortgage aimed at the buy-to-let market.

The mortgage guarantees to keep interest repayments at 0.06% below the Bank of England’s base rate, for three years.

It starts on a highly attractive 5.69% interest rate that will provide strong competition for other buy-to-let lenders, such as Paragon.

Loan-to-value ratio is up to 85%, which compares with a loan-to-value ratio on new business of 68%, from Paragon.

Borrowers will need to show a tenancy income to interest repayment ratio of 100%, rather than 125%, which is the norm in the buy-to-let sector.

http://www.financemarkets.co.uk/2007/11/22/birmingham-midshires-launches-buy-to-let-tracker/

Looks like a good deal?

Spudwud

There are better deals out there, unless they allow adverse credit, then this deal is pretty average to be fair

Leon_W

Probably with their pretty much standard 2.5% lenders arrangement fee. Work that into the equation and it's probably just a run of the mill tracker.Anything that has a rental calculation based on 100% of payrate is usually a higher risk to the lender and will be priced accordingly.

Regards

meanmachine_2

Yes, it's a walloping 2.5% arragement fee.

and it's 110%, not 100% according to the website.

So it's rubbish - but still much better than poor old Para-gone.

Why are BM bothering to be competitve? Unless they want to kill off the competiton.

Then watch the product fees/IRs soar!!