NatWest Intermediary Solutions has launched two new products into its corporate and core ranges and has reduced the rates on its 60% LTV fixed rate products.
To its core range it has added a 2 year buy-to-let tracker mortgage offering an initial rate of 3.99%, with a £1,999 fee, up to 60% LTV. And, into its corporate range it has introduced a 2 year fixed rate remortgage offering an initial rate of 3.89%, with a £999 fee, up to 75% LTV.
In addition, the rates on its 2 year fixed rate 60% LTV mortgages in its corporate range have been reduced by 0.10%. The purchase mortgage has reduced from 3.29% to 3.19% and the remortgage rate has decreased from 3.34% to 3.24%.
Graham Felstead, Head of Intermediary Channel, NatWest Intermediary Solutions said, "Having experienced a significant decline in market size in line with the residential market, the buy-to-let sector has displayed a considerable amount of stability over the last year or so with around £2.1 billion* of gross advances being made each quarter since Q1 2009. And, there are signs that the health of this sector is on the up, evidenced by the improvement in the arrears rate** for buy-to-let properties. For those buy-to-let investors who are back in the market our new tracker deal offers them an attractive deal.
"With the expectation that we could see rates start to rise sometime in 2011, it's a good time for intermediaries to investigate the potential benefits of remortgaging their residential clients. The rate on our new remortgage product will compare well to the current SVRs that brokers' clients find themselves on."
Details of the changes to the NatWest Intermediary Solutions range:
NEW
Corporate range
Remortgage: 2 year fixed rate at 3.89% (4.0% SVR, 4.2% APR), 75% LTV, with a £999 arrangement fee until 31 August 2012.
Core range
Buy-to-let: 2 year tracker at 3.99% (4.0% SVR, 4.9% APR), 60% LTV, with a £1,999 arrangement fee until 31 August 2012.
RATE CHANGES
Corporate range
Purchase: 2 year fixed rate has reduced to 3.19% (4.0% SVR, 4.1% APR) from 3.29%, 60% LTV, with a £699 arrangement fee until 31 August 2012.
Remortgage: 2 year fixed rate has reduced to 3.24%(4.0% SVR, 4.0% APR) from 3.34%, 60% LTV, with a £699 arrangement fee until 31 August 2012.
Overpayments of up to 10% of the outstanding balance per annum are allowed during the initial deal period. ERC applies. We won't charge you basic legal or valuation fees for a standard residential remortgage.
* Source: CML
**Source: CML. Percentage of buy-to-let properties that were more than 3 months in arrears in Q1 2010 was 1.81% down from 3.06% in Q1 2009.