Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Lenders Launch New Buy-to-Let Products and Cut Rates
Several lenders have introduced new buy-to-let (BTL) mortgage products and rate reductions in July, according to a report by Mortgage Solutions. The changes include updates to criteria, new product launches, and rate cuts across a range of BTL offerings.
Zephyr Homeloans has reduced its lifetime tracker rates for large houses in multiple occupation (HMO) and multi-unit freehold block (MUFB) properties by 25 basis points. These reductions apply to properties with 7-12 bedrooms or units. Rates now start at 5.74% (bank base rate plus 1.99%) up to 65% loan to value (LTV), with a maximum loan size of £2 million and a 3% product fee. At 75% LTV, the rate is 5.79% (bank base rate plus 2.04%) with a maximum loan size of £1.5 million and a 3% product fee. These products have no early repayment charges. Zephyr will also now lend to HMO and MUFB properties above or adjacent to commercial premises, up to a maximum of 75% LTV.
Tipton & Coseley Building Society has launched a new two-year fixed rate for expat BTL borrowers at 5.64%, available up to 70% LTV with a £1,900 arrangement fee. This product is available for expats living in countries on the Financial Action Task Force approved list and the UAE, subject to some exceptions. The society has also reintroduced high-income multiple mortgages in its residential range and made several rate reductions.
Interbay has introduced a new 65% LTV option in its BTL range and a dedicated pricing band for loans between £10 million and £25 million. Rates have been reduced by up to 20 basis points for both new customers and product transfers. For example, a two-year fixed at 75% LTV in the £1 million to £2 million band is now priced at 5.14% with a 5% fee, down from 5.34%.
Dudley Building Society announced reductions of up to 100 basis points across its BTL, residential, holiday let, and expat ranges. Its two-year fixed BTL product up to 80% LTV is now available at 5.5%, down from 6.3%. The two-year fixed holiday let product at 80% LTV is now available at 5.55%, also down from 6.3%.
Paragon Bank has updated its BTL bank base rate tracker range with a new 2% fee product for single self-contained properties at 75% LTV, priced from bank base rate plus 1% (currently 4.75%). This product includes a free mortgage valuation, no application fee, and no early repayment charges.
CHL Mortgages has launched a light refurbishment range for investors making improvements such as new bathrooms, kitchens, windows, doors, or updated fixtures and fittings. Two-year fixed rates start from 4.4% for single dwelling properties up to 75% LTV with a 5% fee, and from 4.5% for small HMO and MUFB properties with up to six bedrooms or units. Five-year products in the same range start from 6.11% for single dwelling properties and 6.21% for small HMO/MUFBs.
These changes may be relevant for letting agents and inventory clerks monitoring mortgage product availability and criteria for landlords and property investors.
Source: Mortgage Solutions