Buy to Let Mortgages Update August 2023
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 31/07/2023.
Buy to Let Market Update: -
Leeds Building Society – has launched a new range of Buy to Let products for limited company applications. The new products include two- and five-year fixed rate mortgages at both 75 percent and 80 percent Loan to Value.
The lender has also updated their stress rates for standard Buy to Let mortgages. Less than five-year product term for purchase and capital raising remortgages will be stressed at product rate + 2 percent (Min 5.50 percent). Less than five-year product term for like for like remortgages will be stressed at product rate (Min 5 percent). More than five-year product terms will be stressed at product rate + 1 percent (Min 5.50 percent).
Coventry for intermediaries – has reduced rates on all their two- and five-year fixed rate Buy to Let and portfolio landlord products. Buy to Let products are reducing by between 0.39 percent and 0.74 percent. The lender has increased the whole portfolio reference rate for Portfolio Landlords to 6.5 percent.
Skipton Building Society – has altered the stress rate for products with a fixed term of less than five years, from 7.56 percent to 8.14 percent. For products with a fixed term of five years or more, the Buy to Let stress rate remains at 6.29 percent.
Paragon Bank – has launched new limited edition Buy to Let portfolio products. Fixed rates start from 5.75 percent. There is a choice of products, including some with fixed product fees and no application fees. All products currently benefit from free valuations.
Santander for Intermediaries – has increased selected Buy to Let fixed rates by between 0.05 percent and 0.29 percent. The lender has also withdrawn their Buy to Let larger loan intermediary exclusive rates. At the same time the lender has launched new 60 percent Loan to Value two and five year Buy to Let remortgage and purchase fixed rates.
Landbay – has cut rates across their fixed rate Buy to Let product range for landlords by between 0.30 percent and 0.70 percent.
Like-for-Like remortgage standard two-year fixes at 75 percent loan to value, rates now start from 4.39 percent. Standard two-year fixes at 75 percent LTV, rates now start from 5.49 percent. Small houses in multiple occupation and multi-unit freehold blocks five-year fixes at 70 percent LTV, rates now start from 5.79 percent.
The lender has also reintroduced fixed rate offers for trading companies and first-time landlords of small houses in multiple occupation and multi-unit freehold blocks.
Virgin Money – will now accept applications from portfolio landlords where the only source of income is from your property portfolio. The lender will consider like for like remortgages, purchases, and re-mortgages with additional lending.
Precise Mortgages – has launched new limited edition Buy to Let products. Two fixed rates start from 4.69 percent with five-year fixed rates starting from 5.69 percent. The products are available for both individual and limited company applications.
Kent Reliance for intermediaries – has launched new limited edition Buy to Let products. Two fixed rates start from 4.89 percent with five-year fixed rates starting from 5.24 percent. The lender will also consider HMO and Multi Unit One Freehold Blocks with up to 10 lettable rooms/units. Affordability is stressed at 1.55 percent above pay rate for purchases and capital raising remortgages and 1.05 percent above pay rate on like for like remortgages.
Principality Building Society – has updated its mortgage lending criteria with changes for both Buy to Let and holiday let applications. The lender will now consider non owner occupiers including first time buyers, when applying for a Buy to Let or holiday let mortgage and the Society has removed its minimum income requirements for both products.
NatWest intermediary solutions – has changed their Buy to Let stress rates. For two-year fixed products the stress rate is increasing from 8.1 percent to 8.6 percent. For five-year fixed products the stress rate is increasing from 6.89 percent to 7 percent. For Like for Like remortgages the stress rate is increasing - increase 7.54 percent to 8.21 percent.
Aldermore Bank – has launched a limited edition Buy to Let range. For individual and company landlords with single residential investment properties. The limited edition five-year fixed has a 1.50 percent lender fee and is fixed at 6.69 percent which is available up to 75 percent loan to value. A limited edition five-year fixed is also available, with a 3.00 percent lender fee, at 6.39 percent to 75 percent LTV.
The lender has also launched multi-property limited edition products for individual and company landlords with residential investment properties. The limited edition five-year fixed has a 1.50 percent lender fee and is fixed at 6.59 percent to 75 percent LTV. A limited edition five-year fixed is also available, with a 3.00 percent lender fee, at 6.29 percent to 75 percent LTV.
Fleet Mortgages – has introduced a limited-edition product feature which will reward landlord borrowers with a £1,000 cashback payment if you improve the Energy Performance Certificate (EPC) level of the property to a C or above during the course of the initial fixed-rate period. The cashback is available on five- and seven-year fixed-rate products, excluding green options, which complete from the beginning of July 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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