Hampshire Trust launches new buy-to-let range with varying ERCs

Hampshire Trust Bank has launched two new specialist five-year fixed rate residential and semi-commercial products for professional landlords borrowing up to £25m, with differing ERC profiles.

The bank has introduced the products to support more borrowers to achieve the leverage they require to retain or grow their residential and mixed-use portfolios. The specialist lender’s service levels have now recovered to normal levels following turmoil in the mortgage market after the ‘mini Budget’ in September.

‘ERC Plus’ and ‘ERC Lite’ allow brokers to choose between the two products depending on the client’s particular affordability requirements and rate preference, and are available in HTB’s specialist buy-to-let, HMO & MUFB range as well as its semi-commercial offering at up to 75% LTV.

ERC Plus offers borrowers a lower rate, starting from 6.79%, in exchange for an increase in the typical ERC payable by 1% in any year for the life of the loan upon exit.

The ERC Lite product is at a higher rate, starting from 6.99%, but with HTB’s existing ERC profile applicable.

For both products, clients continue to benefit from up to 10% of the original loan amount repayable per annum without charge.

HTB provides specialist residential loans for limited companies, offshore entities, expats and foreign nationals, as well as mixed use portfolios and semi-commercial properties.

Chris Daly, managing director of specialist mortgages at Hampshire Trust Bank, commented: “We are delighted to announce this enhancement to our specialist investment loan proposition. The Bank has been listening carefully to brokers who have been outlining landlords’ difficulties with affordability, especially since the ‘mini Budget’ in late September 2022 and the subsequent turmoil in the lending markets.

“ERC Plus and ERC Lite demonstrate HTB’s commitment to professional landlords and will enable brokers to be able to select the appropriate product to meet their clients’ requirements.”