Buy to Let Market Update: February 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: -
Coventry Building Society - has cut rates across its buy-to-let mortgage range by up to 0.60%. Its 5-year fixed rate product at 75% Loan to Value (LTV) has been reduced from 2.55% to 2.25%. This is available for purchase, remortgage, product transfer and further advance. The 5-year fixed rate for portfolio landlords at the same lending tier has been reduced from 2.79% to 2.35%. This has a £1,999 fee and is available for purchase, remortgage, product transfer and further advance.
The Mortgage Works – has reduced selected limited company buy-to-let rates by up to 0.20% and added no-fee options to their range. Additionally, the lender introduced a new 10-year fixed buy-to-let mortgage.
BM Solutions – has introduced a new stress rate calculation for remortgages with no additional borrowing, also known as ‘like for like remortgages’, where the Loan to Value is 60% or less. Clients who are remortgaging, with no additional borrowing at 60% LTV or less will benefit from a new rental cover ratio of 145% at a reduced stress rate of 4.5%. The rental cover ratio of 145% will be applied for all clients regardless of their tax band. This will only apply where the selected product has a term of less than five years. There is no income threshold or additional credit score requirement for this reduced stress rate.
Accord Mortgages – has launched a range of 5-year fixed products with no early repayment charges from day one. Rates start from 2.39%.
Landbay – has refreshed their range with rate reductions by up to 0.29%. The lender has also launched a large HMO and large multi-unit on one freehold title product range, available through selected partners including 3mc/NRLA Mortgages.
Pepper Money – has improved its Buy to Let criteria and will now accept rental income as an allowable and standalone income stream for professional landlords with 11 properties or more on Limited Company Buy to Let applications. They have also increased the maximum loan to £2m with a max LTV of 65% above £1.5m. Their aggregated exposure limit has increased from £3m to £4m.
Kent Reliance – has launched new criteria as well as improved pricing across their entire buy to let products. Fixed rates now start from 2.49% and they have also introduced a zero-lender fee 5-year fixed rate for loan sizes up to £500,000. They have also removed their maximum loan size up to 85% Loan to Value (LTV).
InterBay Commercial – has improved its holiday let criteria by increasing the maximum Loan to Value to 75% with rates now starting from 3.29%.
Barclays Bank – has brought out a green home buy-to-let (BTL) mortgage range for new and existing landlords that gives lower interest rates for those who buy energy efficient new builds. The products are available for new-build purchases that have an energy efficiency rating of 81 or above, or are in energy performance certificate (EPC) bands A or B. It includes a 2-year fixed rate at 1.64% at 75% Loan to Value (LTV), and a 5-year fix at the same tier with a rate of 1.87%. Both come with a £1,295 lender fee.
Paragon Bank - has introduced five brand new buy-to-let remortgage only products within their portfolio range. At 65% and 75% Loan to Value, these products start from 2.77% and offer free mortgage valuations, no application fees and a range of cashback options.
Vida Homeloans – has improved their BTL range including launching up to 85% LTV for both personal and special purpose vehicles (SPV) purchasers. There is no minimum income on Buy to Let mortgages if the property was self-funding and that the range also included a Buy to Let fee saver option on its 5-year loans.
HSBC - has reduced rates across a number of their Buy to Let product for both 2- and 5-year fixed rates and for Loan to Values up to 75%.
Metro Bank - has increased the maximum loan size for its buy-to-let (BTL) products and made some changes to its criteria. The maximum loan size for its 75% Loan to Value BTL mortgages has gone from £750,000 to £2m. As well as this, the lender is also accepting ex-local authority flats and properties with thatched roofs on its applications.
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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