Buy to Let Market Update: March 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 27/03/2024.
Buy to Let Market Update:
The Mortgage Works – has reduced rates on selected Buy to Let and Limited Company products by up to 0.4 per cent. New product highlights include a five-year fixed rate (purchase and remortgage) at 3.99 per cent with a 3 per cent lender fee, available up to 55 per cent LTV. Five-year fixed rate (purchase and remortgage) at 4.04 per cent with a 3 per cent lender fee, available up to 65 per cent LTV. Five-year fixed rate (purchase and remortgage) at 4.59 per cent with no lender fee, available up to 65 per cent LTV.
The new Limited Company rates include a two-year fixed rate (purchase and remortgage) at 4.99 per cent with a 3 per cent lender fee, available up to 75 per cent LTV. The lender has also reduced its interest coverage ratio (ICR) calculations to improve affordability for borrowers. For higher-rate taxpayers, the ICR has reduced from 165 per cent to 160 per cent. For limited company borrowers and lower-rate taxpayers it has reduced from 130 per cent to 125 per cent. The lender has also lowered their existing portfolio rental calculation stress rate from 5 per cent to 4.5 per cent.
Virgin Money - has launched a range of five-year fixed rates with early repayment charges in the first two years. The new rates start from 4.89 per cent.
Coventry for Intermediaries - has lowered its Buy to Let stress rates. The new stress rates are as follows: 4.75 per cent (previously 5.5 per cent.) for five-year fixed rates, for purchase and remortgage applications – Or product pay rate (whichever is higher). 5 per cent (previously 5.5 per cent) for two-year fixed rates, for remortgages with no additional borrowing – Or product pay rate (whichever is higher). 6.5 per cent (previously 7 per cent) for two-year fixed rates, for purchases and remortgages with additional borrowing – Or product pay rate plus 2 per cent (whichever is higher).
The lender has also reduced selected Buy to Let products by up to 0.26 per cent.
Skipton for Intermediaries - has lowered its Buy to Let stress rates. For products with a fixed term of less than 5 years, the BTL Stress Rate has reduced to 7.05%. For products with a fixed term of 5 years or more, the BTL Stress Rate has reduced to 5.99%.
Santander for Intermediaries - has reduced their Buy to Let fixed rates by up to 0.12 per cent.
Paragon Bank - has launched a new range of five-year fixed rate products for portfolio Buy to Let clients. Available up to 75 per cent LTV, these new five-year fixed rates start from 5.35 per cent, with both 2.5 per cent and fixed product fee options available. These products are available for purchase and remortgages, and all come with a free mortgage valuation.
Precise - has reduced rates on its Tier 1, 80 per cent LTV Buy to Let products by 0.50% and reintroduced products. The lender has reintroduced its Tier 2 and Tier 3 landlord products, starting from 5.19 per cent, designed for BTL borrowers who have previously experienced “challenges” with credit.
Kent Reliance for Intermediaries - has reduced rates on its 80 per cent LTV Buy to Let products by 0.50 per cent. Full range rates start from 4.59 per cent and are suitable for various property types, including houses of multiple occupancy (HMOs) with up to 20 lettable rooms. The lender will now accept investment valuations on five- and six-bedroom HMOs, provided the property is located within an article 4 Direction area.
Aldermore Bank - has launched several limited edition Buy to Let deals and lowered select BTL rates. The products include two BTL products for landlords. This includes a five-year fixed rate up to 65 per cent loan LTV with a 1.5 per cent lender fee at 5.59 per cent, and its fee-free version is 5.89 per cent.
The lender has also cut rates for its existing five-year fixed rates at 65 per cent LTV with a 5 per cent lender fee by up to 0.10 per cent.This includes its individual and company landlord with single residential investment property deal, which is priced at 4.8 per cent, and its multi-property for individual and company landlords with residential investment properties is priced at 4.79 per cent.
Landbay - has launched new five-year fixed rate products at 80 per cent LTV for both standard properties and small houses in multiple occupation (HMOs), as well as reducing a number of other rates. The new 80 per cent LTV five-year product for standard properties is available at 6.39 per cent and comes with no lender product fees. The HMO version is available at 6.59 per cent with no lender product fees. Landbay has also cut rates on a selection of their two-year and five-year fixed-rate product ranges.
Birmingham Bank - has launched new two fixed rates for both HMO’s and MUFB’s. The lender will now also consider up to 8 bed HMO’s. Their products are distributed via a select number of brokers including 3mc/NRLA Mortgages. As part of the current product choice, all NRLA members will qualify for an additional £250 cashback at completion.
Hampshire Trust Bank - has launched a flexible tracker product for property investors. The Flex product is limited edition and available on a two-year discounted rate. It is available across HTB’s Buy to Let and semi-commercial ranges.
Leeds Building Society - has stopped issuing new holiday let loans in North Norfolk District and North Yorkshire councils for a 12-month trial period starting from the end of March. The lender has also reduced their stress rates. Five-year product Buy to Let stress rate has reduced to Product Rate +0.5 per cent (Minimum 5.5 per cent). The five-year product Limited Company stress rate has reduced to Product Rate + 0.5 per cent.
Clydesdale Bank - has reduced select Buy to Let mortgage rates. Its two- and five-year fixed BTL rates have reduced by 0.3 per cent.
Yorkshire Building Society Commercial Mortgages - has reduced rates cross their range of Holiday Let and HMO products by 0.15 per cent. Product options include for Holiday Let, Five-year fixed rate of 5.75 per cent on loans of up to £1.5 million, up to 75 per cent LTV, with a 2 per cent lender fee. For HMO, Five-year fixed rate of 5.80 per cent on loans over £500,000, up to 75 per cent LTV, with a 2 per cent lender fee.
The lender has also reduced their stress rate from pay rate plus 0.3 per cent to pay rate.
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.
