Castle Trust Bank has strengthened its buy-to-let (BTL) offering for TermTen.
The bank has introduced a new rate tier for medium HMOs of seven to 10 rooms, offering a five-year fixed interest rate of 5.99% and up to 75% loan-to-value (LTV).
Loans are available from £200k to £5m, with a 3% arrangement fee and 1% exit fee.
The new category falls between small HMOs with up to six rooms and large HMOs with between 11 and 15 rooms.
Castle Trust Bank’s TermTen proposal combines a 10-year term with a five-year fixed interest rate and interest-only payments.
It is available to landlords, first-time landlords, limited companies and individuals, as well as expatriates, foreign nationals and borrowers with complex ownership structures.
Along with HMOs, the range supports standard residential properties, multi-unit freehold complexes and holiday rentals.
The bank uses pooled values on apartment blocks of up to 10 units and bases vacation rentals on vacation rental income.
Loans over £5 million may also be considered, subject to tailored rates.
“An HMO with seven rooms can offer different lending requirements to one with 15 rooms,” says Anna Lewis, commercial director at Castle Trust Bank. “Our new medium HMO category recognizes this difference, helping brokers match rates more closely to the property their clients are financing.”
“Owners need to consider their monthly borrowing costs and their long-term plans. TermTen gives them a way to manage both, while our broad lending criteria help brokers support clients with a wide range of properties and ownership structures.”
