The challenge: Rising costs impacting borrowing potential
The property market is evolving rapidly, and landlords are navigating a complex landscape of rising costs, interest rates at greater levels than previous historic lows and tighter margins. These challenges are particularly acute in areas with lower property yields where it can be difficult to achieve the desired leverage. This can stifle growth by restricting the equity available for investment in growing property portfolios.
We understand these challenges and are committed to empowering landlords to overcome them.
The solution: Our Alternative Fee option
Our Alternative Fee option is available exclusively on our 5-year fixed rate commercial, semi-commercial and buy-to-let mortgages.
By offering a higher-fee, lower-rate structure, this option enables property landlords to:
- Boost gross leverage to secure the borrowing they need to fund acquisitions or release equity for growth.
- Improve cashflow with lower monthly payments and providing breathing room for landlords to manage their finances effectively.
By offering this tailored product, we aim to support landlords and brokers with a practical solution for navigating today’s financial challenges.
How it works
The Alternative Fee option is available with our commercial, semi-commercial and buy-to-let mortgages with a 5-year fixed rate term. A lower interest rate is offered in exchange for an increased arrangement fee. You can contact us, speak to a member of our business development team, or if you are a Commercial Mortgage Broker read more in our Intermediary section.
