Buy-to-let market update December 2021
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: -
Metro Bank - is now offering buy to let purchase and remortgage products up to a maximum of 80% Loan to Value, up from 75% LTV. It has also decreased the 5-year fixed stress rate from 4% to 3.5% for loans up to 75% LTV (for loans above 75% LTV, a 4.5% rate applies) and will no longer require proof of income for self-funding buy to lets. Alongside the changes, Metro Bank has reduced rates on its 5-year buy to let products, which now start from 2.29%, down from 2.79%.
The Mortgage Works – has updated its range of remortgage deals for landlords with the cashback increased from £250 to £400 and rates reduced by up to 0.40%. The lender has also relaunched its range of mortgages for houses of multiple occupancy (HMO’s). The new rates, available up to 75% Loan to Value, include 2-year fixed rates starting from 2.29% with a 2% fee and 5-year fixed rates starting from 2.99% with a 2% fee. The new HMO mortgages can be used for purchase, remortgage or further advance. A range of alternative fee and rate combinations are available.
Virgin Money & Clydesdale Bank – have increased rates by up to 0.10% on selected fixed rate products.
Accord Mortgages – has removed its minimum income requirements for buy to let landlords. The lender will no longer require landlords to earn at least £25,000 in order to qualify for its buy to let mortgages. The lender will also look at applications from landlords who are also first-time buyers on a case-by-case basis.
Landbay – has refreshed their limited-edition remortgage range, reducing rates by up to 0.05% and lowered the minimum loan size to £200,000. There is a £500 cashback upon completion and the option for a free valuation on standard properties.
Precise Mortgages – has launched a range of limited-edition products available across all schemes including core, limited company, HMO and limited company HMO. 2-year fixed rates start from 2.69% with 5-year fixed rates starting from 2.99%.
Kent Reliance – has increased its maximum LTV to 85% and launched a range of limited-edition products. 5-year fixed rates now start from 3.34% and the lender will consider up to 10 bed HMO’s and up to 10-unit MUB’s.
CHL Mortgages – has introduced a raft of products across new LTV bands, reduced rates on existing deals and introduced some new 2-year fixed rate options for landlords. Rates now start from 2.69% on the lenders’ 5-year fixed rate buy to let product range (up to 50% LTV) and from 2.85% up to 75% LTV. Both are available on the individual and limited company offerings with product fees ranging from 1.25% to 2%.
The lenders’ HMO/MUB range has also seen the introduction of several new products as well as rate reductions across existing LTV bands. 5-year fixed rates start from 2.94% at 50% LTV and from 3.15% up to 75% LTV. This range also includes a 0% product fee option at 65% and 75% LTV for 2-year fixed products.
Paragon Bank - has reduced rates across four of its 80% and 75% Loan to Value (LTV) 5-year fixed rate buy to let products. The reductions across 80% LTV products include a 5-year fixed rate reduced to 3.95% from 4.09% and a 5-year fixed rate 80% LTV green mortgage (available for EPC A-C properties) reduced to 3.85% from 3.99%. Both of these products incur nil product fee and include a free valuation and £350 cashback.
The reductions across 75% LTV products include a 5-year fixed rate reduced to 3.15% from 3.35% and a 5-year fixed-rate green mortgage (available for EPC A-C properties) reduced to 3.05% from 3.25%. Product fees for the 75% LTV deals are charged at £1,995 and both products feature free valuations, no application fees and £750 cashback. The lender has also raised their aggregate borrowing limit from £5,000,000 per borrower to £10,000,000 per borrower.
Vida Homeloans – has launched a limited edition 5-year fixed rate at 2.94% with no lender fee. The product is available to 75% Loan to Value and is available for individuals, HMO’s, MUB’s and SPV limited Company applications.
MPowered Mortgages - has launched limited edition 5 and 7-year fixes with reduced rates. Rates for 5-year fixes now begin at 2.94%, down from 3.04%. The 7-year fixes start from 3.04%. The lender is offering free valuations across all its limited-edition products including those for purchase and homes in multiple occupancy (HMO). All products have a 1.5% 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 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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