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Buy-to-let lenders jumped on the rate reduction bandwagon in September – Armstrong

With the latest Bank of England base rate announcement behind us and no immediate change on the horizon, it will certainly be interesting to see how quickly lenders make rate adjustments in the coming weeks.

This month has already seen many price reductions and the trend is likely to continue. It’s been positive to see lenders focusing on new options to support affordability, particularly with respect to the introduction of a variety of lower rate and higher fee products.  

Let’s kick off this month’s round-up with an example of just that. 


Falling rates 

West One has introduced a new sub-five per cent, five-year fixed buy-to-let product. Priced at 4.68 per cent, it is stressed at pay rate to allow landlords to achieve higher loan to values (LTVs). The 9.99 per cent arrangement fee does mean that this won’t suit everyone, but, with four different fee options available in its range,  

West One is providing brokers with choice to better support a range of different client circumstances. The four fee categories are 2.5 per cent, 4.99 per cent, seven per cent and 9.99 per cent. 

Precise Mortgages has introduced limited edition buy-to-let products that feature options for both personal ownership and limited company landlords. They offer reduced five-year fixed rates, lower minimum loan sizes (loans from £40,000) and a new five-year fixed seven per cent fee product. The latter is available at 5.24 per cent up to 75 per cent LTV and is assessed at pay rate. 

Keystone Property Finance has also introduced a new range of seven per cent arrangement fee products to assist clients with affordability. The range includes a 5.49 per cent five-year fixed product that is available up to 65 per cent LTV with a maximum loan size of £2m and a 5.59 per cent five-year fixed that is available up to 75 per cent LTV with a maximum loan size of £1.5m. The specialist lender has also made reductions of 10 basis points (bps) on its five-year standard, specialist, ex-pat and holiday let products. 

Fleet Mortgages has introduced three new seven-year green products that are priced 10bps lower than their five-year counterparts and are aimed at those landlords seeking payment certainty over a longer period. The standard and limited company products are priced at 5.74 per cent up to 75 per cent LTV with a three per cent fee.  

The product is stressed at pay rate and is available to properties with an EPC rating of A to C. These new products arrive alongside a rate reduction of 15bps across all fixed rate products and the introduction of product transfers to support ongoing property investment. 

Foundation Home Loans (FHL) launched a five-year fixed special portfolio landlord product in its F1 tier. It features a five per cent fee with rates starting from 5.79 per cent at 65 per cent LTV and a maximum loan size of £1m.  

An alternative 75 per cent LTV version is available with an initial rate of 5.89 per cent and a five per cent fee. FHL has also introduced two and five-year special products for its F1, F2 and houses in multiple occupation (HMO) ranges.  

These feature a three per cent fee and start at 6.04 per cent for a two-year fixed at 65 per cent LTV for landlords with an almost clean credit history. 


The reductions continued 

Landbay has made a series of rate reductions this month. Its two-year fixed range has been reduced by up to 0.50 per cent and now starts from 4.19 per cent for a standard property at 55 per cent LTV and a seven per cent fee. Reductions apply to standard properties, small HMO and multi-unit freehold block (MUFB), plus the like-for-like remortgage range.  

The Mortgage Lender (TML) has also made reductions to its core range. Its five-year fixed rates at 75 per cent LTV have decreased by 10bps including the five per cent completion fee option that is now available on a standard property at 5.66 per cent.  

Kensington launched a buy-to-let special in its core range for both individual and limited company landlords. The two-year fixed product is priced at 5.79 per cent and is available for both purchase or remortgage with a £5,000 completion fee and a maximum LTV of 75 per cent.  

The lender also reduced pricing across its buy-to-let product ranges. 

Aldermore has introduced a number of limited edition buy-to-let products this month. Individual and company landlords with single residential investment properties can benefit from a five-year fixed product priced at 5.49 per cent that comes with a five per cent fee and is available up to 75 per cent LTV and a maximum loan size of £1m. A multi-property product is also available priced at 5.49 per cent with a five per cent fee, with the maximum LTV dependent upon portfolio size (75 per cent LTV up to £5m and 65 per cent LTV for large loans between £5m–£10m). 

Molo launched limited edition two and five-year fixed buy-to-let rates that are available for all applicants including first-time landlords and portfolio landlords.  

Its two-year fixed rates now start from 5.45 per cent for standard buy-to-let products and 5.55 per cent for specialist and large HMO/MUFB products. Its five-year fixed rates now start from 6.55 per cent for standard products and 6.65 per cent for specialist and large HMO/MUFB products.  

Molo has also made updates to its portfolio buy-to-let criteria to cater for landlords with up to 50 mortgaged properties. 

And finally, Suffolk Building Society has this month reintroduced a number of two-year fixed rate products. Its buy-to-let range now includes a two-year fixed priced at 6.59 per cent up to 80 per cent LTV, whilst its holiday let range features a two-year fixed at 6.75 per cent up to 80 per cent LTV.  

Both products have a £999 completion fee and a maximum loan size of £1m. 

Cat Armstrong, mortgage club director at Dynamo for Intermediaries

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