LENDERS DISPLAY A POSITIVE ATTITUDE TOWARDS SUPPORTING BTL AFFORDABILITY
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/higher fee products. Let’s kick off this month’s round-up with an example of just that.
West One has introduced a new sub-5%, 5-year fixed buy to let product. Priced at 4.68%, it is stressed at pay rate to allow landlords to achieve higher LTVs. The 9.99% 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%, 4.99%, 7.00% and 9.99%.
Precise Mortgages has introduced limited edition buy to let products that feature options for both personal ownership and limited company landlords. They offer reduced 5-year fixed rates, lower minimum loan sizes (loans from £40,000) and a new 5-year fixed 7% fee product. The latter is available at 5.24% up to 75% LTV and is assessed at pay rate.
Keystone Property Finance has also introduced a new range of 7% arrangement fee products to assist clients with affordability. The range includes a 5.49% 5-year fixed product that is available up to 65% LTV with a maximum loan size of £2 million and a 5.59% 5-year fixed that is available up to 75% LTV with a maximum loan size of £1.5 million. The specialist lender has also made reductions of 10bps on its 5-year standard, specialist, ex-pat and holiday let products.
Fleet Mortgages has introduced three new 7-year Green products that are priced 10bps lower than their 5 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% up to 75% LTV with a 3.00% fee. The product is stressed at pay rate and is available to properties with an EPC rating of A–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 has launched a new 5-year fixed special portfolio landlord product in its F1 tier. It features a 5% fee with rates starting from 5.79% at 65% LTV and a maximum loan size of £1 million. An alternative 75% LTV version is available with an initial rate of 5.89% and the 5% fee. FHL has also introduced new 2- and 5-year special products for its F1, F2 and HMO ranges. These feature a 3% fee and start at 6.04% for a 2-year fixed at 65% LTV for landlords with an almost clean credit history.
Landbay has made a series of rate reductions this month. Its two-year fixed range has been reduced by up to 0.50% and now starts from 4.19% for a standard property at 55% LTV and a 7% fee. Reductions apply to standard properties, small HMO and MUFB, plus the Like for Like Remortgage range.
The Mortgage Lender (TML) has also made reductions to its Core range. 5-year fixed rates at 75% LTV have decreased by 10bps including the 5.00% completion fee option that is now available on a standard property at 5.66%.
Kensington launched a new buy to let special in its core range for both individual and limited company landlords. The 2-year fixed product is priced at 5.79% and is available for both purchase or remortgage with a £5,000 completion fee and a maximum LTV of 75%. 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 5-year fixed product priced at 5.49% that comes with a 5% fee and is available up to 75% LTV and a maximum loan size of £1 million. A multi-property product is also available priced at 5.49% with a 5% fee, with the maximum LTV dependent upon portfolio size (75% LTV up to £5m and 65% LTV for large loans between £5m–£10m).
Molo has launched new limited edition 2-year and 5-year fixed buy to let rates that are available for all applicants including first-time landlords and portfolio landlords. 2-year fixed rates now start from 5.45% for standard buy to let products and 5.55% for specialist and large HMO/MUFB products. 5-year fixed rates now start from 6.55% for standard products and 6.65% 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 2-year fixed rate products. Its buy to let range now includes a 2-year fixed priced at 6.59% up to 80% LTV, whilst its holiday let range features a 2-year fixed at 6.75% up to 80% LTV. Both products have a £999 completion fee and a maximum loan size of £1 million.
Cat Armstrong - 25.09.2023 | Posted in