Buy to Let Market Update: August 2022
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.
Buy to Let Market Update: -
Landbay – has repriced the first ever exclusive mortgage product for NRLA Members. If you are looking for buy-to-let finance with fixed payments for the next 5 years, this exclusive product has a 0.15% reduction in the pay rate and a £250 Cashback when compared to the lenders core range. This product is fixed for 5 years with a pay rate of 4.34% and is available for the remortgage and purchase of rental property including lending to SPV Limited Companies (Special Purpose Vehicle) and individuals up to 75% Loan to Value.
Landbay have also launched a new semi exclusive 10-year fixed rate range with rates starting from 4.04%.
BM Solutions – has launched new products for the purchase, Let to Buy, or remortgage of Buy to Let properties which have an Energy Performance Certificate (EPC) rating of A, B, or C. 2-year fixed rates start from 3.16%- and 5-year fixed rates start from 3.15%.
The Mortgage Works – has launched two buy-to-let products for limited companies, while cutting selected limited company rates by up to 0.15%. The specialist lender’s two new loans are a 2-year fixed-rate deal at 75% loan to value at 3.49%, with a 2% fee. It is available for purchase, remortgage and further advances and comes with free standard valuations. It also launched a two-year fixed rate offer at 75% LTV at 3.74%, with a 2% fee. This is available for remortgage and comes with free standard valuations/legal fees.
Clydesdale Bank – has announced rate increases with their core BTL 2- and 5-year fixed rates being increased by up to 0.10%. £1m+ BTL 2- and 5-year fixed rates have increased by up to 0.25%.
Precise Mortgages – has expanded the LTV options available by launching a new range of 70% LTV rates and re-introducing 75% LTV products. New 70% LTV range with rates starting from 3.69%. The products are available to personal ownership, limited company, HMO, and limited company HMO landlords. The lender has also enhanced its refurbishment buy to let range. The range combines short-term finance with the security of a long-term exit. The enhanced proposition will now give a choice of three exit products, depending on the type of refurbishment work being carried out, including standard, energy efficiency and EPC C+ refurbishment.
Paragon Bank – has introduced two brand new 2-year discounted variable rates and two 3-year fixed rates within their portfolio range. The 2-year discounted variable rates start from 2.99%, and the 3-year fixes start from 4.69% with a £500 cashback. These products all offer free mortgage valuations and are available for single self-contained units, HMOs and multi-unit blocks on both purchases and remortgages.
Quantum Mortgages- is one of the newest lenders to enter the Buy to Let market. The lender is an intermediary-only specialist lender, initially focusing on the needs of experienced landlords offering a range of BTL products.
CHL Mortgages – has launched a refurbishment product range consisting of three products: Light Refurbishment, Cosmetic Improvement and EPC Improvement. The first two products are designed to increase the future asset/rental value of the property, with the latter a Green Mortgage option which is specifically designed to improve the energy efficiency of the property. The range is available to individuals and limited companies and is applicable on standard buy-to-let properties, small houses in multiple occupation (HMO) and small multi-unit freehold blocks (MUFBs) with five-year fixed rates starting from 4.41%. Lending will be calculated on the pre-works value with a retention held based upon the post-works estimated valuation. The product range has a maximum 75% loan-to-value (pre and post works, which means landlords can release more if the value of the property has increased post works) and the maximum cost of work must not exceed 25% of the pre-work property value.
Lendinvest - has made a number of updates to its buy-to-let lending criteria, which include broader rules for houses in multiple occupation (HMO) and multi-unit freehold blocks (MUFB).The lender has brought out an HMO product for first-time landlords and it will also offer rental yield based valuations on small HMOs, which it defines as up to six rooms, in Article 4 areas.
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.
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ANY PROPERTY USED AS SECURITY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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