Castle Trust revamps TermTen buy-to-let product with 'lock in' rate

Castle Trust Bank has revamped its TermTen buy-to-let product to offer brokers and their clients more certainty in a rising rate environment.

Related topics:  Mortgages
Rozi Jones
4th July 2022
house lock fixed rate mortgage
"At a time where interest rates are so volatile, we’re introducing changes to provide brokers with certainty about the rate they can offer their clients."

The revamped TermTen product features a booking fee of 0.07% to ‘lock in’ the current rate. The fee is payable when a credit-backed DIP has been agreed and will secure the rate for 120 days once the terms have been issued. If the loan completes within this timeframe, the booking fee will be deducted from the arrangement fee at completion.

TermTen is available for 4.96% up to 75% LTV for loans on standard buy-to-let properties, holiday lets, portfolios, HMOs and MUFBs. The rate is fixed for five years, with ERCs payable only during the fixed rate period, and the maximum loan size is £15m.

Castle Trust Bank can consider applications from all types of buy-to-let investors, including portfolio landlords, first-time landlords, individual and limited companies – including complex structures. Loans are also available to expats and foreign nationals.

Barry Searle, managing director of property at Castle Trust Bank, said: “At a time where interest rates are so volatile, we’re introducing changes to provide brokers with certainty about the rate they can offer their clients. Our revamped TermTen loan not only provides buy-to-let landlords with the opportunity to finance specialist or complex investments over a longer term than a traditional bridging loan, but it also now gives them the certainty of locking into the rate they are quoted during a DIP.

"In a rising rate environment, where lenders frequently increase their pricing, this innovative new feature provides peace of mind that, as long as the loan completes within 120 days, the rate a broker quotes to their client is the rate that they are guaranteed to get.”

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