Castle Trust has announced that it has launched an entirely new set of mortgage products known as Series 2 which will run in parallel with the lender’s existing Series 1 product set.
Series 2 fixed rates range between 4.99% and 6.99% and the offering is targeted on larger buy to let portfolio deals in the £1m to £25m range and can include apartment blocks and HMOs. Arrangement Fees are typically in the range of 1% to 2%.
Series 2 is available exclusively on a first charge basis (Series 1 already accommodates second charges) with terms of two to five years. Rental property must be income producing, typically let on standard ASTs.
Series 2 structures do offer the option to roll up some of the interest where rental income does not support the servicing of the full loan amount.
Series 2 is also available to Limited Companies, but the ultimate obligors must be UK nationals currently resident in the UK with no significant credit impairment.
Castle Trust’s established product range (Series 1) will be unaffected by the launch and will continue to concentrate on a broad range of clients with more complex needs including foreign nationals, ex-pats and impaired credit.
Matthew Wyles, Executive Director at Castle Trust Capital, said: “Series 2 signals our renewed commitment to a highly competitive offering to professional and portfolio landlords. We believe that, during the next three years, larger, corporate BTL players will grow their market share at the expense of the smaller and less experienced landlords. We intend to be the go-to lender for those professional investors and we have ambitious plans to grow this segment of our business significantly.”