Pepper Homeloans has launched a limited edition buy-to-let five-year fixed rate of 2.98%.

It has a rental calculation based on the pay rate.

The new deal is available on Pepper NP1 products only (no CCJs or missed payments in the past 36 months and no arrears in the past six months).

The maximum loan to value (LTV) is 75%, with a minimum loan size of £25,001 and a maximum of £1 million.

Pepper’s rental calculation is 140% x pay rate.

The completion fee is 1.75%, with ERCs of 4%, 4%, 3%, 3%, 2%.

Free legals are available on all remortgages.

Rob Barnard, sales director of Pepper Homeloans, said: “Our research indicates that this product will typically appeal to investors who are seeking capital growth over a five-year period. The pay rate rental calculation also means landlords can borrow more, providing them with a significant benefit.

“With a rate of just 2.98%, a minimum loan size of £25,001 and free legals on remortgages, this is a very attractive package which landlords could see as an ideal opportunity to refinance their portfolio.”