Buy to Let Market Update: October 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 15/10/2022.
Buy to Let Market Update: -
Accord Mortgages - has launched a new Buy to Let product range for new business following their temporary withdrawal. All products come with a free valuation and there are a range of cashback/remortgage legal service options. 2- and 5-Year products are available at 65% and 75% Loan to Value (LTV) with rates starting from 5.84%.
Platform part of The Co-operative Bank – has introduced new 2-year tracker products available up to 75% LTV. The rates start from 3.14%.
Santander – has reintroduced up to 75% LTV Buy to Let products. The new range includes 2- and 5-year fixed rate options with rates starting from 6.04%.
HSBC – has reintroduced a Buy to Let range. Pricing for purchase Buy to Let’s start from 5.44% at 60% LTV and 5.49% for remortgages at the same LTV tier. Both come with a £1,999 fee.
Coventry for intermediaries – has reintroduced a Buy to Let range. The new range includes a 5-year fix at 5.85% to 30 April 2028 at 75% LTV, with a £1,999 fee. And a BTL portfolio 5-year fix at 5.95% to 30 April 2028 at 75% LTV, with a £1,999 fee. The lender has also launched 2-year flexx trackers with rates starting from 4.5%.
BM Solutions – has introduced new stress rate and rental cover ratio (RCR) calculations for all Purchase, Remortgage, Let to Buy and additional borrowing applications. Product transfer applications are not affected. The new rental cover ratio is from 125% up to 145%. The new stress rate will vary from 6.5% or product pay rate + 1% or + 2% (whichever is higher) and dependent upon the product selection.
The Mortgage Works – has launched a range of 2- and 5-year fixed buy-to-let (BTL mortgages. The new BTL products include a 1-year fixed at 75% LTV at 4.64% with a 2% fee, a 2-year fixed at 65% LTV at 5.04% with a 3% fee and a 5-year fixed at 65% LTV at 5.14% with a 3% fee. The lender also offers a number of 2-year BBR trackers with the ability to switch and fix during the initial product period.
The lender has announced it has updated its stress rates. Following significant changes in BTL interest rates and the wider economy, the lender has increased the minimum stress rate on BTL mortgages to 8.49%. The lender says the change is “an interim measure to better protect landlord cashflows during a period of interest rate turbulence”. TMW says its affordability model remains under review and it intends to launch a more tailored approach to stress rates in due course.
Landbay – has reintroduced a range of semi exclusive 5-year fixed rate products. The products are available to individuals and limited companies and for HMO, Multi – Units and standard investment properties. The rates start from 6.59%. The lender has also launched a range of 1- and 2-year fixed options with rates starting from 4.59%.
The Mortgage Lender (TML) – has launched a range of 5-year fixed rate products available up to 75% LTV. The rates start from 6.04%.
Fleet Mortgages – has introduced a new range of products including 5-year fixed rates starting at 6.39% at 65% LTV. At 75% LTV 5-year fixed rates in the range are priced from 6.49% and at 80% LTV the rate is 6.73%. On the houses in multiple occupation (HMO) and multi-unit blocks, a 5-year fixed rate at 65% LTV is 6.53% and 6.63% at 75% LTV.
The lender has added tracker products at 75% LTV. Standard and limited company trackers are the base rate plus 1.75%, and HMO and multi-unit block trackers are the base rate plus 2%. Tracker products come with a 2% fee and 6-month early repayment charge (ERC) period up to 30 June 2023.
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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