Mortgage distributor 3mc has introduced a two-year tracker package funded by Precise Mortgages.
The product is available for individuals, limited company buy-to-lets and houses in multiple occupation (HMOs) with a rate of 3.29 per cent.
3mc said that the mortgage is the cheapest HMO two-year deal to be funded by Precise.
The deal is available to all intermediaries and through 3mc’s network partners The Right Mortgage and Protection Network, Sesame, Stonebridge Network, Home Loan Partnership and to directly authorised members of the PMS Mortgage Club.
It is a 3.29 per cent two-year tracker (Libor + 2.91 per cent) reverting to 5.0 per cent.
The loan will be delivered between £25,001 up to £500,000 with a maximum loan-to-value (LTV) of 75 per cent and will include and arrangement fee of £1,995.
The product will also include and early repayment charge of three per cent in year one and one and two per cent in year two. The rental calculation will be 125 per cent of the higher of the pay rate or revert rate
Doug Hall, director of 3mc, said: “We have seen an increase in interest in both individual HMOs and limited company BTLs as investors seek higher yields. I therefore have no doubt that this new product, which has a 125 per cent rental cover calculation and which sits alongside a two-year fixed rate launched in the summer, will prove to be popular with brokers and their clients.”
Alan Cleary, managing director of Precise Mortgages, said: “We’re delighted to be launching this new HMO deal exclusively through 3mc. Both individual investors and those buying through a limited company, can benefit from this excellent two-year tracker offer.”