Castle Trust Bank has revamped its TermTen buy-to-let (BTL) product as part of a move to offer brokers and their clients more certainty amid rising interest rates.

The revamped product features a booking fee of 0.07% to ‘lock in’ the current rate.

Castle Trust Bank confirmed the fee is payable when a credit-backed decision-in-principle (DIP) has been agreed and will secure the rate for 120 days once the terms have been issued. If the loan completes within this timeframe, the booking fee will be deducted from the arrangement fee at completion.

The firm’s TermTen is available for 4.96% up to 75% LTV for loans on HMOs, standard BTL properties, holiday lets, portfolios and multi-unit freehold blocks (MUFBs). The rate is fixed for five years, with early repayment charges (ERCs) payable only during the fixed rate period, and the maximum loan size is £15m.

“At a time where interest rates are so volatile, we’re introducing changes to provide brokers with certainty about the rate they can offer their clients,” said managing director of property at Castle Trust Bank, Barry Searle.

“Our revamped TermTen loan not only provides BTL landlords with the opportunity to finance specialist or complex investments over a longer term than a traditional bridging loan, but it also now gives them the certainty of locking into the rate they are quoted during a DIP.

“In a rising rate environment, where lenders frequently increase their pricing, this innovative new feature provides peace of mind that, as long as the loan completes within 120 days, the rate a broker quotes to their client is the rate that they are guaranteed to get.”

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