Castle Trust unveils 10-year term loan
Castle Trust has launched TermTen, a 10-year term loan that is fixed for 5-years before reverting to the lender’s standard variable rate (SVR).
Annualised rates on TermTen start at 4.49% and there are no early repayment charges payable after five years.
The product is available for buy-to-let with serviced interest and a maximum LTV of 75% or 80% for loans of £500,000 or less.
The minimum loan size on TermTen is £50,000 and the maximum loan size is £15m.
Marcus Dussard, sales director at Castle Trust, said: “We have seen increasing demand from property investors for loans that can deliver the flexibility and lending appetite of traditional bridging, but with longer terms that can provide them with peace of mind.
“The market is changing, and while there remain plenty of opportunities for investors, those opportunities tend to be longer term – with a flat property market and stagnant house prices providing little for short-term investors to get excited about.
“TermTen has been developed as a direct response to this demand from investors, providing them with the safety of a 10-year term and the flexibility to refinance penalty-free after five years.
“The rates are very competitive compared to other options in the specialist buy-to-let market and we will also be able to provide an exit to the loan, to provide clients with multiple options throughout the 10-year term.”