Buy-to-Let Market Update - December 2024

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 29/11/2024.

BM Solutions – has increased their maximum loan to value (LTV) to 80 per cent for specific applications, including fees, for purchases, remortgages, and further advances. The maximum loan is £350,000, the minimum EPC rating has to be A-C, the loan cannot exceed 80 per cent LTV, including any fees being added to the loan. The change also applies to further advances and product transfers. The lender has also increased the number and total portfolio value of buy-to-let or let-to-buy mortgages landlords can have with Lloyds Banking Group. This consists of Bank of Scotland, Birmingham Midshires, TMB, Halifax, Intelligent Finance, Lloyds Bank, C&G and Scottish Widows. The maximum number of BTL / LTB mortgaged properties with Lloyds Banking Group allowed has increased from 5 to 10. The lender has also increased selected buy-to-let products by up to 0.23 per cent.

The Mortgage Works - has made changes to selected rates across its new business product range. There are a combination of rate increases and rate cuts. These include, the buy-to-let two-year fixed 65 per cent LTV with no application fee which has increased to 4.79 per cent. The lender’s limited company two-year fixed buy to let at 75 per cent LTV with a £1,495 lender fee has increased to 5.99 per cent. However, its HMO two-year fixed 75 per cent LTV with a £1,495 lender fee has decreased to 5.84 per cent and its limited company two-year fixed with a 3 per cent lender fee has also been reduced to 4.74 per cent. The lender will also now accept intercompany loans as a deposit option for buy-to-let (BTL) mortgage applications from limited company landlords.

Santander for Intermediaries – has increased selected buy-to-let fixed rates by up to 0.13 per cent. The lender has also made changes to its buy-to-let affordability rates. Rates have been lowered on the lender’s standard affordability rate from 7.31 per cent to 7.15 per cent. Meanwhile, both the five-year fixed and pound-for-pound remortgage affordability rates have been reduced from 5.31 per cent to 5.15 per cent.

NatWest for Intermediaries – has increased rates, the two-year fixed purchase option at 60 per cent LTV with a £995 lender fee has gone up from 4.59 per cent to 4.69 per cent, while the fee-free option has increased by 0.05 per cent to 5.15 per cent.  The equivalent five-year fixed rates have increased from 4.47 per cent to 4.59 per cent and from 4.48 per cent to 4.65 per cent respectively.

Paragon Bank – has launched a new limited-edition five-year fixed product range available up to 65 per cent LTV. Rates start from 4.74 per cent and all products come with a free valuation.

Coventry for Intermediaries – has reduced its buy-to-let stress rates. New stress rates include a five-year fix for purchase or remortgage applications at 4.5 per cent, which was previously 4.75 per cent. The stress rate for two- and three-year fixes for remortgages with no additional borrowing is now 4.5 per cent, down from 5 per cent, while two- and three-year fixed and variable rate deals for purchase and remortgage with additional borrowing now come with a stress rate of 5.5 per cent, down from 6.5 per cent.

Landbay - has enhanced its like-for-like remortgage range with new lower stress testing. For landlords with no changes to their current borrowing requirements, the like-for-like product range offers different two-year fixed rate options. Rather than the standard calculation of pay rate plus 2 per cent, this range is stress tested at pay rate, providing enhanced affordability.

The Mortgage Lender (TML) – has launched a number of limited-edition buy to let products, as well as a semi- exclusive product for a number of Specialist Distributors/ Key Accounts, including NRLA Mortgages/3mc.

The limited-edition products start from 3.94 per cent with various lender fee options and the semi-exclusive product is a five-year fixed multi loan product, fixed at 4.93 per cent with a 5 per cent lender fee. With the multi loan, a landlord only pays for 1 booking fee and 1 valuation fee.

Kent Reliance for Intermediaries – has launched a sub 4 per cent buy-to-let product as part of two new limited-edition ranges. The first limited edition range offers lower rates from 3.99 per cent on loans of between £100k and £750k. It also comes with two- and five-year fixed low-rate options. The fixed fee limited-edition range offers lower lender fees starting at £799. The range has two- and five-year fixed rate options between 75 per cent LTV and 80 per cent LTV.

Aldermore Bank – has launched new buy-to-let limited-edition two-year products. The limited-edition two-year fixed rates are available from 4.94 per cent up to 75 per cent LTV with a 3 per cent lender fee for individual and company landlords with single residential investment properties. Two-year fixed rate multi property products start from 4.89 per cent at 75 per cent LTV with a 3 per cent lender fee or 6.19 per cent with a £1,999 lender fee. The lender has also improved their buy-to-let remortgage criteria for recently purchased properties. The change allows landlords to apply for a buy-to-let remortgage from the first day post-purchase of the property. The change means the lender now allows the maximum loan to reflect the current market value of the property, up to the standard maximum 75 per cent LTV, for remortgages between day one and six months.

Fleet Mortgages - has relaunched its range of five-year fixed rate products for landlord purchasing or remortgaging a property with an Energy Performance Certificate (EPC) rating of A-C. Available across its three core product ranges, standard and limited company products are available at 5.04 per cent up to 75 per cent LTV, while the HMO/MUB product is offered at 5.44 per cent. All EPC A-C products come with a lender fee of 3 per cent, with a minimum of £750. Fleet also continues to offer its £1,000 cashback incentive to landlord borrowers who improve the EPC level of their property to a C or above during the course of their initial fixed rate period.

The lender has also relaunched its range of 65 per cent and 75 per cent LTV five-year fixed rate products with both fixed and zero fee options. The new options are available across the lender’s standard, limited company and houses of multiple occupation (HMO)/multi-unit block ranges.

Accord Mortgages – has reduced its interest coverage ratio rates (ICRR), the stress rates it applies to buy-to-let affordability calculations.  The changes mean that where landlords are remortgaging on a like-for-like basis, the ICRR has reduced to 5.5 per cent (previously 6.0 per cent), or product rate plus 1 per cent (whichever is higher) for products with an initial term of less than five years. For products with a term of five years or more, the ICRR is 4.75 per cent, down from 5.5 per cent, or product rate plus 1 per cent. Where a landlord is purchasing a property or remortgaging with capital-raising, the ICRR is 5.5 per cent (was 6.5 per cent) or product rate plus 2 per cent (whichever is higher) for mortgages with a term of less than five years. For product terms of five years or more, the ICRR has reduced to 4.75 per cent (was 5.5 per cent) or product rate plus 1 per cent. The lender’s interest coverage ratio (ICR) remains at 125 per cent for all basic rate taxpayers and 145 per cent for all higher rate taxpayers. 

Vida Homeloans -  has improved their buy-to-let criteria, with the maximum loan size for buy-to-let applications increased to £2m for loans up to 75 per cent LTV, across all credit tiers. The new limit applies to all personal buy-to-lets, SPVs, MUBs and HMOs. In addition, Vida has reintroduced their buy-to-let limited-edition, five-year products, up to 80 per cent LTV, with options at both 4 per cent and 6 per cent lender fees for individual units or HMOs/MUBs.

ModaMortgages – is the newest lender to enter the buy-to-let market. The lender has entered a “controlled launch” phase ahead of a national rollout over the coming months.

The business, which operates exclusively through mortgage intermediaries, will work with a select number of specialist distributors and packagers, including NRLA Mortgages/3mc, to lend to small and large portfolio investors, limited companies, individuals, and first-time landlords.

United Trust Bank – has reduced buy-to-let rates by up to 0.5 per cent. The new range of buy-to-let products available to individual, portfolio, limited company SPV and first-time landlords. Five-year fixed rates start from 4.99 per cent with two-year fixed rates starting from 5.69 per cent. The products include a range of lender fee options.

CHL Mortgages – has launched a limited-edition range of two and five-year fixed-rate standard and HMO/MUFB buy-to-let products. The new range features standard two-year fixed rates starting from 4.04 per cent at 75 per cent LTV and standard five-year fixed rates from 4.74 per cent at 75 per cent LTV.

The range also includes HMO/MUFB products for properties up to six bedrooms or units with two-year fixed rates starting from 5.55 per cent at 75 per cent LTV and five-year fixed rates from 4.78 per cent at 75 per cent LTV. All products are available to individual and limited company landlords and include a range of lender fee options.

Foundation Homeloans - has launched a new F2 limited-edition holiday let five-year fixed-rate product, which is for landlords financing a more specialist property type. The new product is available up to 75 per cent loan-to-value (LTV), has a rate of 6.24 per cent and comes with a 2.25 per cent lender fee. The lender has also launched a semi-exclusive five-year fixed rate product with only a three-year early repayment penalty period. The semi-exclusive product is available through limited distribution including NRLA Mortgages/3mc.

Zephyr Homeloans – has reduced all fixed rates by 0.1 per cent.

Furness Building Society – has launched new buy-to-let and holiday let products. The new products cater to buy-to-let, and holiday let customers across England, Scotland, and Wales. The new two-year products offer rates starting at 4.84 per cent for cases up to 65 per cent LTV and 5.04 per cent up to 75 per cent LTV, with a £995 lender fee. Holiday let landlords can also benefit from a two-year fixed rate at 5.28 per cent up to 65 per cent LTV and a five-year fix at 5.18 per cent up to 75 per cent LTV, both with a £995 lender fee.

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.

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 specialist 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.

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