Cambridge & Counties Bank is to offer loans to experienced residential property investors.
The new Cambridge & Counties Residential Investment Loan will have rates starting from 4.50% (plus Bank of England Base Rate) and will be a secured long-term lending product of up to 25 years.
The minimum term is three years.
The bank will lend up to 70% of the lower of either the market value or purchase price of the property. The loan is available for property investment via purchase and/or refinance.
Repayment of interest will be monthly, with capital repayments of equal monthly amounts via Direct Debit throughout the life of the loan, except where interest only facilities are allowed. Interest only loans will be available for periods of up to 10 years and are capped at an LTV of 70%.
Gary Wilkinson, chief executive, Cambridge & Counties Bank, said: “We have enjoyed a successful launch, and entering the residential lending market is the latest example of our continued growth.
“Not only does this proposition support businesses looking to invest in property, thereby benefiting business development and growth within the economy, it will also help bring more housing onto the market and aid the current housing shortage. There is a lot of competition in this sector, but by offering a competitive rate, coupled with our commitment to providing a quality service, we are confident our proposition will be well received.”
The Cambridge & Counties Residential Investment Loan will be distributed through its business development managers covering Leicester, Northamptonshire and Cambridgeshire, and nationally through its broker network.