Posted June 11, 2020

Certain But Flexible: A Five-Year Fixed Rate With Only Two Years Of Early Redemption Penalties


A lot has changed since the 23rd March, which was when Boris Johnson first announced the countrywide, government lockdown.

Since then, we have taken the first steps towards normality, with one of the first industries to open again being the property sector.

As the country eases out of lockdown, the property market will continue to be integral in supporting the UK’s economy.

After recently being able to reopen, estate agents are now able to progress with viewings and sales, which presents an opportunity for landlords looking to borrow and invest in both property development and commercial property.

Investment opportunities

A specialist bank focused on providing specialist business finance, specialist mortgages and development finance solutions has recently unveiled new lending products, referred to as “5:2 products”.

The borrower can get the certainty and leverage provided by a five-year fixed rate with only two years of early redemption penalties. This flexibility enables our clients to receive more control in managing their property portfolios as plans change and opportunities arise over the next few years.

For BTL and HMO loans between £100,000 and £500,000, the rate is 4.99% up to 75% LTV. For borrowing between £500,000 and £5M, the rate is 4.69% at 75% LTV and 4.65% at 70% LTV.

For semi-commercial loans between £100,000 and £5M, the rate is 5.35% at 75% LTV and 5.2% at 70% LTV. For borrowing in excess of £5M, the rate is priced on application.

The products focus on getting back to normality and are perfect for clients who are excited to start looking forward and preparing for the future.

Finance 4 Business

If you are interested in preparing financially for the future, our commercial mortgages team have the skills, experience and tools to help you navigate the current challenges and deal with any enquiries you may have.

Whether you are interested in a five-year fixed rate with only two years of early redemption penalties or access to fixed terms at a margin of c. 2.5%, we can help.

Find out more about the finance available to you for property development or investment by calling a specialist finance broker on 0121 309 0444.