Mortgages 

TMA/Precise launches three-year, fixed rate, BTL product

TMA Mortgage Club (TMA) has announced an exclusive three-year, fixed  rate, buy-to-let (BTL) product with Precise Mortgages for its mortgage club members.

The Precise BTL product has some of the largest portfolio limits on the market for landlords, according to TMA, with up to 20 properties, with a combined value of £5m.

It is available to individual and limited company landlords for purchase and remortgage.

Available for up to 75 per cent loan to value with a maximum loan of £500,000, the 3.65 per cent, three-year, fixed-rate product is only available to TMA Mortgage Club members.  

Despite the recent BTL regulatory changes, Precise’s criteria is unchanged. This means TMA members can benefit from up to 20 BTL mortgages, up to a combined value of £5m with Precise, while there is no limit on the size of existing portfolios.

There is also no limit on the number of director-dependant shareholders under the age of 25 for limited company applications.

At the end of September, the PRA brought in tough new portfolio landlord rules. These requires a special underwriting process for landlords with four or more BTL mortgages.

From 1 January this year, BTL lenders regulated by the PRA have already had to implement stricter affordability tests, such as ensuring the interest cover ratio and a stress test on interest rate rises.

 

Provider view:

Richard Keen, head of key accounts at Precise Mortgages, said: “The ‘heavy lifting’ that we will manage will enable brokers to transition smoothly into this exciting area. This is a further example of how we look to support our key distribution partners with innovation and market-leading products.”

Rob McCoy, senior product and business manager at TMA, added: “Following the introduction of the new PRA changes, not only is the deal competitively priced, but Precise Mortgages also offers portfolio limits higher than most other lenders, giving our members exclusive access to another strong product to offer their landlord clients.”

Adviser view

Highclere Financial Services director Alan Lakey said: “It is encouraging to see lenders providing products that meet niche areas. Many lenders limit portfolios to four or five properties, so this will prove useful in assisting clients and also putting pressure on recalcitrant lenders who will lose good business by limiting their intake.”

Michelle Lawson, director at Lawson Financial, added: “Precise are always good at innovation and it is good to see exclusive deals come through for brokers.”

Charges:

Product fee of £1,995.

Verdict:

The product will be welcome to advisers who have clients with large property portfolios, especially given Precise’s commitment to look through more stringent regulations.

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