Cambridge and Counties Bank has recently unveiled a new five-year fixed rate mortgage plan specifically designed for residential landlords, signaling a strategic move to cater to the burgeoning demand from the property sector.
The newly launched mortgage product comes at a time when the bank has noticed a significant increase in interest from both clients and commercial finance brokers. This surge in enquiries has prompted the bank to offer a dedicated financial solution to support the investment aspirations of residential landlords.
Key Features of the Mortgage Offer
Competitive Rates: The mortgage is offered at starting rates of 6.49%, providing a cost-effective option for landlords looking to secure long-term financing.
Loan to Value Up to 75%: Landlords can avail loans up to 75% of the property value, allowing considerable leverage for their investments.
Substantial Minimum Loan Value: The product targets significant investments with a minimum loan amount of £750,000, positioning it as a premium option in the financial market.
Expert Insights
Jayne Follows, the Head of Real Estate Finance at Cambridge and Counties Bank, highlights the uniqueness of this offer. She explains that this is the first time the bank has introduced a fixed-rate product exclusively targeting residential landlords over a limited period. This approach not only stabilises borrowing costs but potentially enhances rental income growth relative to these costs, given that they are fixed for five years.
Strategic Benefits and Market Impact
Follows further underscores the bank’s commitment to adapting its services to meet market demands and support clients and brokers in maximising market opportunities. This initiative is part of a broader spectrum of specialised lending options that Cambridge and Counties Bank aims to provide, reinforcing its position as a proactive participant in the real estate finance sector.
Recent Performance Highlights
The bank’s strategic initiatives seem to be paying off, as evidenced by its performance in the previous year. In 2023, Cambridge and Counties Bank achieved a remarkable £328 million in gross mortgage lending, marking a 6% increase from the prior year. This growth indicates a healthy demand for its mortgage products and a strong market presence.