"The move underscores our focus on working with clients and brokers to help them capitalise on market opportunities with a range of dedicated lending options"
- Jayne Follows - Cambridge & Counties Bank
Cambridge & Counties Bank's new 5-year product is being rolled out in response to heightened levels of enquiries from clients and commercial finance brokers.
Rates are available from 6.49% depending on the arrangement fee paid, with loan-to-value rates of up to 75%. The minimum loan value is £750,000.
One of the benefits of the product, and a key reason for the rise in market demand, is that such fixed-rate vehicles offer a high level of certainty on future payments for residential investors and landlords. In turn, this can help with cashflows and investment planning.
Fixed-rate loans have continued to attract property professionals. Cambridge & Counties Bank itself has seen continued demand: a recent example includes a £3.25 million loan to support a London-based property team refinance against two freehold residential properties in North West London.
Jayne Follows, Head of Real Estate Finance at Cambridge & Counties Bank, said: “While we offer competitive fixed rates on commercial and residential products, this is the first time we’ve published a limited period fixed rate targeting residential landlords. One benefit is it can mean rental income grows relative to borrowing costs, which are fixed for a set amount of time.
“The move underscores our focus on working with clients and brokers to help them capitalise on market opportunities with a range of dedicated lending options.”
