Buy to Let Market Update: April 2023
Welcome to ‘Buy to Let Market’, a column aimed at providing you with recent criteria and product updates within the Buy to Let lending markets. The information within this article is correct as at 31/03/2023.
Buy to Let Market Update: -
The Mortgage Works – has launched a new 55% Loan to Value (LTV) Buy to Let range for purchases and remortgages. The new 55% LTV products include a 5-year fixed rate at 4.09%, with a 3% lender fee. A 5-year fixed rate at 4.44%, with a £1,495 lender fee and a 5-year fixed rate at 4.74%, with no lender fee.
Paragon Bank – has launched 6 limited edition products for their portfolio range. These products start from 4.80%, offer a free mortgage valuation and are available for loans up to £4,000,000. They're available for both purchases and remortgages on single self-contained units, HMOs and multi-unit blocks in England, Wales and Scotland.
Accord Mortgages – has reduced Buy to Let rates across all loan to value (LTV) tiers by up to 0.24%. A 2-year fix at 60% LTV reduced to 4.64% from 4.77%. This comes with a £1,995 completion fee, and the option of either free remortgage legal service or £250 cashback. A 2-year fix at 65% LTV for clients who are purchasing a property cut to 4.76% from 4.94%, which comes with a £1,995 fee and £500 cashback. A 3-year fix at 75% LTV, now priced at 4.96% (was 5.20%), which comes with a £995 fee. Remortgages, also have the option of either £250 cashback or free remortgage legal service; and for house purchasers, the product comes with £250 cashback. All of the above come with a free standard valuation.
BM Solutions – has reduced rates across their Buy to Let and Let to Buy ranges. 2-year fixed rates now start from 3.78% and 5-year fixed rates start from 4.18%.
Coventry for Intermediaries – has reduced rates across its Buy to Let range by up to 1%. The lender has also reduced its BTL stress rate: 5 Year Fixed rates or higher = 5.5% or the product rate (whichever is higher). 2 & 3Year pound-for-pound remortgages = 5.5% or the product rate + 0.1% (whichever is higher). 2 & 3Year purchases = 7.0% or the product rate +2.0% (whichever is higher).
HSBC – has reduced rates across its Buy to Let range by up to 0.30%.
Virgin Money – has reduced their 50% LTV 2- and 5-year fixed rate products with a £3,995 lender fee. The 2-year fixed rate option has reduced by 0.11% to 4.07% and the 5-year fixed rate option has reduced by 0.10% to 4.10%. Other selected fixed rates have reduced by up to 0.10%.
Precise Mortgages – has reintroduced its Refurbishment BTL range comprising of 2- and 5-year fixed rates which will be available up to 80% LTV of the after works valuation figure.
Skipton for Intermediaries – has reduced some of their Buy to Let stress rates. For products with a fixed term of less than 5 years, the BTL stress rate is reducing from 7.60% to 7.15%. For products with a fixed term of 5 years or more, the BTL stress rate will remain at 6.00%. The rate at which the lender will assess any background BTL properties is reducing from 7.60% to 6.00%.
Landbay – has cut rates across its 2-year fixed product range by 0.10% and 0.14% and added a new product. The rate reduction of 0.10% is on existing standard, first-time landlord and trading company 2-year fixed rate products. It also applies to trading company small houses in multiple occupation (HMO) and multi-unit freehold blocks (MUFB), for properties with up to six rooms or units. The standard 2-year fix at 75% LTV is now 4.69% with a 3% fee, or 5.19% with a fee of 2%. The 0.14% rate reduction is for small HMOs and MUFBs and these 2-year fixed rate products also have fee and rate options. The LTV is 75% and the product with a 3% fee has a rate of 4.75%. The product with a 2% fee is now 5.25%. A new standard 2-year fixed rate has also been launched at 5.19% plus a £1,499 fee and a maximum loan size of £74,999.
Fleet Mortgages – has cut product rates across its entire range of 2- and 5-year fixed-rate products by up to 0.20%. The 75% LTV 2-year fixes for both standard and limited company now start from 5.49%, with a HMO/MUFB 2-year fix at 5.59%.
5-year fixes for standard and limited company borrowers now start from 5.09% at 65% LTV and 5.19% at 75% LTV. HMO/MUFB equivalent products are now 5.23% at 65% LTV and 5.33% at 75% LTV. Green 5-year fixed rate products (for properties with energy performance certificate ratings at C and above) – have also been reduced to 5.09% at 75% LTV for standard and limited company, and 5.23% for HMO/MUFB.
Clydesdale Bank – has reduced fixed rates by up to 0.50%, with rates now from 4.60%.
Zephyr Homeloans – has reduced rates across their lifetime tracker products.
Aldermore Bank – has amended their minimum ICR (Interest Cover Ratio) for houses in multiple occupation (HMOs), for individual higher rate taxpayers it has reduced to 160% from 175% (when using surplus personal income, it’s reduced to 135% from 150%).
The Mortgage Lender – has reduced their BTL Ex-Pat product from 6.29% to 5.89% and has also reduced their BTL Holiday Let from 6.59% to 5.99%.
For further information on Buy to Let mortgages both for individuals and limited companies please contact NRLA Mortgages on 0161 341 0581 or visit the NRLA website https://www.nrla.org.uk/services/mortgages.
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.
This is an advertisement only and in no way should be viewed as a personal recommendation or advice. Before a recommendation of the suitability of the product can be given, we will direct you to 3mc (UK) Limited who can provide independent mortgage advice. As part of this they will ask questions so that they can fully understand your circumstances before giving advice.
NRLA Mortgages is a trading name of LPTE Limited which is an Introducer Appointed Representative of 3mc (UK) Limited who is Authorised and Regulated by the Financial Conduct Authority and is entered on the FS Register under reference 302992.
Please note: 3mc can advise/arrange Business Buy to Let (BBTL) and Consumer Buy to Lets (CBTL). Of the two, only Consumer Buy to Lets are regulated by the FCA.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
ANY PROPERTY USED AS SECURITY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
All calls are recorded for training and monitoring purposes.
