FTAdviser.com

Advertising

BM Solutions, Buy-to-let, www.bmsolutions.co.uk

Lender says...

BM Solutions has launched a number of new products.

A buy-to-let two-year fixed rate product is available at 5.49 per cent for a 2 per cent arrangement fee.

The maximum loan-to-value available is 65 per cent and landlords can borrow up to £1m.

The rental calculation is set at 125 per cent of the payrate and there is a 3 per cent early repayment charge up until 1 April 2011 when the deal period ends.

At the end of the two-year fixed rate period, the interest rate reverts to 2.44 per cent more than the base rate for the life of the loan, which would currently give a rate of 7.44 per cent.

Also available is a three-year tracker product that tracks at 0.79 per cent more than the base rate during the deal period, currently giving a rate of 5.79 per cent.

This product is available up to 75 per cent LTV and carries a fee of 2 per cent.

The maximum loan amount available is £1m.

The rental calculation is set at 125 per cent of payrate and there is a 3 per cent early repayment charge during the three-year deal period.

This product is remortgage only and offers a refund on a standard valuation, one per application up to a maximum of £490.

Free legals up to a maximum of £350 are also included.

For all BM Solutions buy-to-let mortgages the property may be let on a single assured shorthold tenancy or to a company on a corporate let. The maximum term is 12 months.

However student lets, holiday lets and tenants claiming housing benefit, rent rebate or rent allowance are not acceptable.

Multiple tenancies, where each tenant signs a separate agreement, are also not acceptable.

A limit of £10m applies to buy-to-let lending across the HBoS group.

Adviser says...

Michael Brill, adviser of Essex-based IFA Baronworth (Investment Services) Ltd, said the products were extremely competitive, which was good news for the buy-to-let sector.

He said: "Both rates are very good. I would certainly recommend them to my clients. I could not find any other product that could touch them. They are very competitive in today's market.

"I think if products come out as good as this one and other lenders want to stay in the market then they have got to be equally as competitive.

"Things could start turning round as they are in the domestic market. Rates are coming down and this could follow on to buy-to-let."

Four stars