Buy to Let Market Update: December 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. The information within this article is correct as at 30/11/2022.
Buy to Let Market Update: -
The Mortgage Works – has reduced selected fixed Buy to Let rates by up to 0.95% and has adjusted its range to offer products with various fee options. New Buy to Let rates include a 1-year fix at 3.89% with a 2% fee, available up to 75% LTV, a 2-year fix at 4.29% with a 3% fee, available up to 65% LTV, and a 5-year fix at 4.69% with a 3% fee, available up to 65% LTV. The above are available for purchase and remortgage with other rate/fee and benefit combinations also available. The lender has also simplified its range by introducing a new, uniform set of fee options across its mortgage range. In addition to products that come with a 3% fee, landlords will also be able to choose from products with reduced fees – either a £1,495 fee or a £0 fee. The lender has also reduced the stress rates for their tracker products and stress rates for fixed rates now starting from 5.89%.
Paragon Bank – has launched 4 Buy to let fixed-rate mortgages, with selected products featuring a reduced interest coverage ratio (ICR) rate calculation. For portfolio landlords, the lender has launched new 5-year fixed rate mortgages with rates starting at 5.40%. The interest coverage ratio (ICR) calculation rate has also been reduced, starting at 5.50% down from 5.75% after it was reduced from 7.00% on 8 November. All products include free mortgage valuations and are available on houses in multiple occupation (HMO), multi-unit blocks (MUB) and single self-contained (SSC) properties.
Accord Mortgages - has reduced its Buy to Let affordability calculations. Where landlords are remortgaging on a like-for-like basis, the interest coverage ratio rate (ICRR) will drop to 6.5%, or product rate plus 1%. Where landlords are capital raising, the lender is reducing the ICRR to 6.5% for products with an initial term of equal to, or greater than 5 years, or product rate plus 1%. The ICRR also reduces to 7.5% for products with an initial term of less than 5 years or product rate plus 2%. The lender has also simplified the interest coverage ratio (ICR). The calculation applied will be 125% for all basic rate taxpayers and 145% for all higher rate taxpayers.
BM Solutions – has reduced rates across their Buy to Let and let to Buy ranges. 5-year fixed rates now start from 5.52%- and 2-year fixed rates starting from 5.77%.
HSBC – has reduced its 2-year tracker fee saver products at 60%, 65% and 75% LTV’s.
Precise Mortgages – has launched a range of limited edition Buy to Let products with fixed rates now starting from 5.39%. The new 5-year fixed rate option is fixed at 5.49% with a pay rate stress rate. The lender has also launched lifetime tracker products which include a No Early Repayment Charge option.
Kent Reliance for Intermediaries – has launched a range of limited edition Buy to Let products available up to 75% LTV and are available for all property types including HMO’s and MUFB properties with up to 10 bedrooms/units. The range includes both discounted and fixed rates options with 2-year discounted options starting from 4.69%.
Landbay – has reintroduced a range of semi exclusive 5-year fixed rate products for selected partners including 3mc/NRLA Mortgages. The products are available to individuals and limited companies. The rates start from 6.24%. The lender has also launched a new range 2-year fixed options with rates starting from 5.24%.
The Mortgage Lender (TML) – has launched a new 2-year tracker product available up to 75% LTV. The product is available for both individual and limited company applications and is Bank Base Rate plus 1.86% with a 2% lender completion fee.
Fleet Mortgages – has reduced fixed rates by 0.20% with 5-year fixed rates now starting from 5.49% with a pay rate stress rate.
Clydesdale Bank – has reduced selected Buy to Let 60% - 75% LTV fixed rates by up to 0.41%, with fixed rates now starting from 5.39%.
Santander – has reduced Buy to Let remortgage and purchase products by up to 0.45%.
CHL Mortgages & Zephyr Homeloans – have both re-entered the Buy to Let market with various product options.
Quantum Mortgages - has launched ‘Switch to Fix’ and reduced its tracker rates. The launch of Switch to Fix will allow clients that take out any tracker product to switch to a fixed rate up to 2 years after completion.
Saffron for Intermediaries – has launched a new 2-year discounted product for Buy to Lets requiring light refurbishment which can be undertaken within 3 months of completion at up to 75% LTV. The product has a current rate payable of 3.69% and is available to both individuals and limited companies.
Lendinvest – has launched new 2-year Bank Base Rate trackers with no early repayment charges from day 1. The products are available up to 75% LTV and the lender has also launched versions of the product for HMO’s and MUFB’s.
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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