Castle Trust is offering a 10-year term loan for people looking to invest in buy-to-let property.
Castle Trust’s TermTen loan for buy-to-let owners is fixed for five years before reverting to the lender’s standard variable rate (SVR).
The loan offers an annualised rate from 4.49% and has no early repayment charges payable after five years.
The product is available on buy-to-let properties with serviced interest and a maximum loan-to-value of 75% for loans of over £500,000 and 80% LTV for loans of £500,000 or less. It has a minimum loan size of £50,000 to a maximum of £15m.
Marcus Dussard, sales director at Castle Trust, said: “We have seen increasing demand from property investors for loans that can deliver the flexibility and lending appetite of traditional bridging, but with longer terms that can provide them with peace of mind.
“The market is changing, and while there remain plenty of opportunities for investors, those opportunities tend to be longer-term – with a flat property market and stagnant house prices providing little for short-term investors to get excited about.
“TermTen has been developed as a direct response to this demand from investors, providing them with the safety of a 10-year term and the flexibility to refinance penalty-free after five years.
“The rates are very competitive compared to other options in the specialist buy-to-let market and we will also be able to provide an exit to the loan, to provide clients with multiple options throughout the 10-year term.”
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