Castle Trust revamps BTL TermTen to give greater rate certainty

The revamped TermTen product features a booking fee of 0.07 per cent to lock in the current rate.

The fee is paid after a credit-backed decision in principle (DIP) has been agreed and allows borrowers to secure the rate for 120 days once the terms have been issued.

If the loan completes within this timeframe, the booking fee will be deducted from the arrangement fee at completion.

TermTen is available for 4.96 per cent up to 75 per cent loan to value (LTV) for loans on homes in multiple occupation (HMOs), standard buy-to-let properties, holiday lets, portfolios and multi-unit freehold blocks (MUFBs).

The rate is fixed for five years, with early repayment charges (ERCs) payable only during the fixed rate period, and the maximum loan size is £15m.

Castle Trust Bank said the loan was available to portfolio landlords, first-time landlords, individual and limited companies – including complex structures. It said ex-pats and foreign nationals could apply for it.

Barry Searle, managing director of property at Castle Trust Bank, said: “At a time where interest rates are so volatile, we’re introducing changes to provide brokers with certainty about the rate they can offer their clients.

“Our revamped TermTen loan not only provides buy-to-let landlords with the opportunity to finance specialist or complex investments over a longer term than a traditional bridging loan, but it also now gives them the certainty of locking into the rate they are quoted during a DIP. In a rising rate environment, where lenders frequently increase their pricing, this innovative new feature provides peace of mind that, as long as the loan completes within 120 days, the rate a broker quotes to their client is the rate that they are guaranteed to get.”