Hampshire Trust Bank is launching two new specialist five-year fixed rate residential and semi-commercial products, for professional landlords borrowing up to £25m, with differing Early Repayment Charge ‘ERC’ profiles.
The bank has introduced these products to support more borrowers to achieve the leverage they require to retain or grow their residential and mixed-use portfolios.
HTB says its service levels have recovered to normal levels following the turmoil in the mortgage market after the ‘mini Budget’ in September.
‘ERC Plus’ and ‘ERC Lite’ allow brokers to choose between the two products depending on the client’s particular affordability requirements and rate preference, and are available in HTB’s Specialist buy-to-let, HMO and MUFB range as well as its semi-commercial offering at up to 75% loan to value (LTV).
ERC Plus offers borrowers a lower rate, starting from 6.79%, in exchange for an increase in the typical ERC payable by 1% in any year for the life of the loan upon exit.
The ERC Lite product is at a higher rate, starting from 6.99%, but with HTB’s existing ERC profile applicable.
Chris Daly (pictured), managing director, specialist mortgages at Hampshire Trust Bank, said: “We are delighted to announce this enhancement to our specialist investment loan proposition. The Bank has been listening carefully to brokers who have been outlining landlords’ difficulties with affordability, especially since the ‘mini Budget’ in late September 2022 and the subsequent turmoil in the lending markets.
“ERC Plus and ERC Lite demonstrate HTB’s commitment to professional landlords and will enable brokers to be able to select the appropriate product to meet their clients’ requirements.”
