Interest Rate Cuts for LandlordsInterest Rate Cuts for Landlords Several lenders have announced rate cuts on buy-to-let mortgages to attract landlords in an increasingly competitive rental market. Agreement has reduced interest rates on its two-year fixed rate mortgages by 0.05% to 0.40% and on three-year fixed rates by 0.10% to 0.20%. LendInvest Mortgages has cut rates on five-year fixed rates by up to 0.10%, with rates now starting at 4.99%. West One has lowered rates on its buy-to-let range, starting at 3.09% and catering to various borrower profiles, including first-time landlords and portfolio landlords. Foundation Home Loans’ buy-to-let brand, Buy to Rent, has introduced a new five-year fixed rate Limited Edition product at 5.59% LTV with a 2.25% fee. The Mortgage Works has reduced rates by up to 0.30% on selected BTL products for both new and existing customers, including a 3.69% two-year fixed rate and a 4.04% five-year fixed rate. Private limited companies also benefit from these rate cuts, with The Mortgage Works offering a two-year fixed rate for buy-to-let purchases of 4.99% with a 3% fee. These rate cuts indicate an intensifying competition among lenders to attract landlords in a market where rental demand remains high.
Another group of rental property lenders have cut interest rates on their products as competition among landlords intensifies.
A statement of Agreement says new buy-to-let borrowers can now benefit from reduced two-year fixed rates, which will be cut from 0.05% to 0.40%. Three-year fixed rates will also be cut by 0.10% to 0.20% and Accord’s two-year tracker rates will be cut by 0.05%.
All discounts apply to the lender’s full new business BTL range, with the exception of the 80% loan-to-value products.
And LendInvest Mortgages has followed up last month’s rate cuts with further cuts in a number of five-year rates by up to 0.10%, with rates now starting at 4.99%.
In the meantime West oneThe latest rate changes mean the buy-to-let range starts at 3.09% and caters for a range of borrowers including first-time landlords, those with poor credit and portfolio landlords looking to borrow up to £10.5m. The BTL range also offers solutions for HMOs, multi-unit freehold blocks (MUFBs), holiday lets, ex-local authority, let-to-buy and expat borrowers.
Buy to rent by Foundation – the buy to let brand of Foundation Home Loans – has launched a new five-year, fixed rate Limited Edition product. Available within the F1 tier for customers with an ‘almost clean’ credit history, the new product is available up to 75% LTV with a rate of 5.59% and a fee of 2.25%.
Finally The Mortgage Works has today reduced rates by up to 0.30% on selected BTL products for both new and existing customers.
For new businesses, the revised rates include a two-year fixed rate for BTL purchase and refinance of 3.69% with a 3% fee, available up to 65% LTV, reduced by 0.10%. There is also a five-year fixed rate for BTL purchase and refinance of 4.04% with a 3% fee, available up to 65% LTV, also reduced by 0.10%.
Mortgage Works’ five-year fixed switcher rate is 4.14% with 3% fees. This rate is reduced by 0.10% and is available for BTL purchases up to 75% LTV.
As part of these changes, the lender’s new business rates for private limited companies have also been reduced. These include a two-year fixed rate for buy-to-let purchases and refinancing of 4.99% with a 3% fee, available up to 75% LTV, reduced by 0.30%.
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