New Flex tracker mortgage offers flexibility for HTB’s property investors

28 February 2024

Hampshire Trust Bank (HTB) has launched the ‘Flex’ tracker mortgage, the market’s latest tracker product with flexibility built in.

The product is available from today as a limited-edition, two-year discounted tracker across HTB’s buy-to-let and semi-commercial offerings.

Flex offers all the benefits of a tracker mortgage plus the ability to either sell the property or lock-into a fixed term within the two-year discount period, without incurring early repayment charges. The product is designed to give investors and developers increased flexibility in the short-term.

Clients will have three options:

• Track: The two-year discounted rate enables borrowers to take advantage if interest rates are reduced.
• Fix: Borrowers can swap onto a HTB new business fixed rate at any time, at no charge. If this is within the two-year discounted period, the ERC on that product will be waived.
• Sell: If the borrower wishes to sell the property during the two-year discounted period, the ERC will again be waived.

Flex is ideal for investors and developers who want the flexibility to move with their local market. This product may not be suitable for borrowers wishing to refinance to another lender during the initial term and ERCs will still apply.

The new mortgage tracker is available up to a maximum net loan to value (LTV) of 75%, with buy-to-let rates starting from 7.80% for Fee Plus, 8.80% for ERC Plus and 9.30% for ERC Lite. Rates start from 8.00% for Fee Plus, 9.00% for ERC Plus and 9.50% for ERC Lite across semi-commercial.
It is the latest innovation from HTB’s specialist mortgages division, available initially as a limited-edition product and created as a result of broker feedback, as similarly experienced with HTB’s Fee Plus offering.

HTB provides professional investors with specialist BTL and residential investment loans up to £25m for limited companies, offshore entities, expats and foreign nationals, as well as mixed use portfolios and semi-commercial properties.

Chris Daly, managing director, specialist mortgages at Hampshire Trust Bank, commented:

“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.”