BTL Mortgage Payment Protection

PS Investor Services are able to offer a hedging plan for property owners looking to protect their assets against future base rate rises.

The product is primarily aimed at those who are not able to remortgage, whether due to high gearing or other property income related issues. Clients can choose to have an excess of up to 3% – once the interest rate increase reaches their chosen excess the plan automatically pays out the additional mortgage payments.

Please note that the product is only for property owners on a tracker or SVR rate. If clients are in a fixed term they can only apply if they have 3 or less months remaining before they revert to the lenders SVR. It can also be applied to commerical loans and Libor rated products. A few other points to note:

• Clients can cover a % of their mortgage should it be so desired;
• The plan is in force for a maximum of 24 months. It is designed as a short term insurance policy not investment policy;
• There is no cancellation of the plan throughout the plan term, apart from within the first 14 days or if the whole mortgage is fully redeeemed and not replaced by a new one;
• The company buy a short term interest rate option which matches the clients plan exactly so there is guarantee that the company will pay out should the clients rate increase above the plans excess, so there is comfort in claims being met;
• Rates are based upon the product rate, lender, loan amount, repayment type and market expectations for rate rises. Therefore the longer one leaves getting proteciton, the higher the premium.