Buy-to-let market update

Welcome to ‘Buy-to-let Market’, a column aimed at providing you with recent criteria and product updates within the buy-to-let (BTL) lending markets. The information within this article is correct as at 29/07/2024.

Buy-to-let market update:

BM Solutions – has reduced rates by up to 0.15 per cent on selected BTL and let-to-buy products.

Santander for Intermediaries – has launched a one-year fixed rate BTL mortgage product. The one-year fixed rate is available at 5.37 per cent up to 75 per cent loan to value (LTV) with a £1,749 lender fee. In addition, the lender has reduced rates across its existing BTL fixed and tracker rate mortgage ranges by up to 0.13 per cent.

Virgin Money – has reduced selected BTL purchase and remortgage rates. BTL fixed rates with a 3 per cent lender fee have been reduced by up to 0.08 per cent, with rates starting from 3.83 per cent. BTL fixed rates with a 1 per cent lender fee have been reduced by up to 0.1 per cent, with rates starting from 4.52 per cent.

NatWest for Intermediaries – has made reductions to selected products across their BTL five-year fixed rate range by up to 0.16 per cent.

The Mortgage Works – has reduced selected BTL rates for new customers by up to 0.25 per cent. Its two-year fixed new business rate for purchase and remortgage at 65 per cent LTV with a 3 per cent lender fee has decreased by 0.15 per cent to 3.54 per cent. The lender’s five-year fixed new business rate for purchase and remortgage at 65 per cent LTV with a 3 per cent lender fee has decreased by 0.1 per cent to 3.94 per cent.

The lenders five-year fixed new business rate for purchase and remortgage at 75 per cent LTV with a 3 per cent lender fee has been reduced by 0.15 per cent to 3.99 per cent.

The five-year fixed rate for new business purchase and remortgage at 65 per cent LTV with a £1,495 lender fee has been reduced by 0.25 per cent to 4.44 per cent.

The lender has also reduced rates by up to 0.25 per cent on new business limited company BTL products, with rates now starting from 4.84 per cent.

Paragon Bank – has launched four new limited edition five-year fixed-rate BTL mortgages. Two of the products have been designed for landlords with three or fewer mortgaged BTL properties, while the remaining two are available for those with four or more BTL dwellings. All four products are available up to 65 per cent LTV for single self-contained properties and come with a £2,995 fee. Rates start from 5.45 per cent for the purchase or remortgage of properties with EPC ratings of A-C, going up to 5.50 per cent and upwards for D or E-rated rental homes. These products all benefit from free mortgage valuations. The lender has also launched a range of NRLA member shared exclusive products via 3mc/NRLA Mortgages. The products come without a lender application fee, saving the member £299.

The lender has also launched a refurb-to-let proposition, which will allow landlords to access finance to upgrade their properties. Two refurb-to-let products are aimed at properties that need some modernisation but not structural changes. This is traditionally defined as work where no planning permission or building regulations are required. The products are suitable for small house in multiple occupation (HMO) adaptations and can be used for single self-contained properties, HMOs, and multi-unit blocks (MUBs) in England, Scotland, and Wales.

The deals are available up to 75 per cent LTV, initially over a 1-6-month term, with monthly product rates from 0.75 per cent. Landlords will then switch to a BTL mortgage from available Paragon products.

Leeds Building Society – has reduced by up to 0.09 per cent on selected BTL and portfolio BTL options. The lender has also reduced selected limited company BTL options by up to 0.25 per cent.

Mansfield Building Society – has rolled out its existing BTL proposition into Scotland. Scottish landlord borrowers will now have access to the lender’s business, consumer, and regulated family BTL product ranges — some postcode restrictions are in place for the Scottish islands. The lender offers loans between £50,000 and £1m at maximum 75 per cent LTV across all its BTL products.

Coventry for Intermediaries – has reduced selected BTL products by up to 0.15 per cent.

The Mortgage Lender (TML) – has reduced their BTL rates across their five-year fixed 75 per cent LTV products for both their core range and portfolio multi-loan.

Precise – has made a number of changes across its BTL product range, including reduced rates now starting from 4.49 per cent.

Aldermore Bank – has launched new limited-edition products. Individual and company landlords with single residential investment properties can access a two-year fix with a 3 per cent lender fee to 75 per cent LTV from 5.09 per cent. The multi-property product for individual and company landlords with residential investment property portfolios can access a two-year fix with a 3 per cent fee to 75 per cent LTV from 4.99 per cent.

Accord Mortgages – has reduced rates on its BTL product range by 0.25 per cent across all LTVs up to 75 per cent. Changes include three-and five-year fixes, while two-year fixed-rate products have reduced by up to 0.15 per cent. Two-year tracker rates have also reduced by up to 0.15 per cent.

Vida Homeloans – has reduced rates across its BTL mortgages by up to 0.35 per cent. Rates now start from 6.12 per cent for a two-year fix and 5.39 per cent for a five-year fixed deal. Vida has also released limited-edition products for BTL borrowers, eligible for individual dwellings or HMOs and MUBs.

This includes a two-year fix at 75 per cent LTV, priced at 5.97 per cent for standard properties and 6.07 per cent for HMOs and MUBs. The product has a £4,995 lender fee and the minimum loan amount is £200,000. The limited-edition five-year fixes have 6 per cent lender fees and a rate of 4.78 per cent for standard properties and 4.91 per cent for HMOs and MUBs. The minimum loan size is £50,000. The range is open to first-time landlords, experienced portfolio landlords, individual borrowers, and limited company special purchase vehicles (SPVs).

Clydesdale Bank – has made reductions to selected two- and five-year fixed rate products by up to 0.14 per cent.

Metro Bank – has launched its first limited company BTL product. Metro’s limited company range is available up to 75 per cent LTV with 125 per cent of the mortgage interest amount calculated at its standard BTL stress rates.

For further information on BTL mortgages both for individuals and limited companies please contact SAL Mortgages on 0131 450 7169 or visit the SAL website www.scottishlandlords.com Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for a specific product. The product rates are correct at the time of writing the article and are subject to change.