Hampshire Trust Bank (HTB) has announced the launch of a new mortgage product for buy-to-let and development investors. This “limited edition” offering, known as the Flex tracker, blends the predictability of a tracker mortgage with unprecedented flexibility.
The Flex tracker allows property investors and developers to benefit from a two-year discounted rate, with the added option to sell the property or switch to a fixed-term deal without facing early repayment charges (ERCs). This product is tailored for those seeking short-term adaptability in their investment strategies.
Key Features and Options
Investors availing of the Flex tracker will find themselves with three strategic choices:
- Track: Enjoy a discounted rate for two years, with the potential to benefit if interest rates fall.
- Fix: Switch to a new fixed-rate mortgage offered by HTB at any moment, free of charge. If this switch occurs within the two-year discounted period, the usual ERCs will not apply.
- Sell: Sell the property within the two-year period without incurring ERCs, offering a clear exit strategy if needed.
HTB emphasises that this product is ideal for those looking to align their investment moves with market dynamics, although it might not suit borrowers planning to refinance with another lender within the initial term as ERCs will still apply in such cases.
Pricing and Availability
The Flex tracker is available up to a maximum loan-to-value (LTV) of 75%, with competitive rates starting from 7.80% for the Fee Plus option, and slightly higher rates for ERC Plus and ERC Lite options in both buy-to-let and semi-commercial categories. These rates reflect HTB’s response to broker feedback and its commitment to offering innovative financial products.
Designed for a Diverse Investor Base
HTB caters to a wide range of professional investors, including limited companies, offshore entities, expats, and foreign nationals, offering loans up to £25 million. This includes financing for mixed-use portfolios and semi-commercial properties, demonstrating HTB’s flexibility and understanding of the market’s needs.
Chris Daly, Managing Director at HTB, shares the vision behind the Flex tracker, “We’re committed to innovation, and our new flexible mortgage tracker is a bold step forward. Driven by broker feedback and a desire to try something new that will genuinely add value for brokers, we’ve reimagined a conventional tracker to be more flexible. This product will appeal to developers who are happy to tenant new developments, before selling down over time as well as giving existing investors the ability to track, fix or even sell during the initial term depending on their needs. The short-term flexibility it offers allows borrowers to adapt to changing personal and market circumstances, recognising that we can’t always accurately predict the future. By empowering investors and developers with better strategic decision-making tools, this tracker enables them to navigate uncertainty, effectively.”