Buy to Let Market Update: April 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 31/03/2023.
Buy to Let Market Update: -
The Mortgage Works – has launched a new 55% Loan to Value (LTV) Buy to Let range for purchases and remortgages. The new 55% LTV products include a 5-year fixed rate at 4.09%, with a 3% lender fee. A 5-year fixed rate at 4.44%, with a £1,495 lender fee and a 5-year fixed rate at 4.74%, with no lender fee.
Paragon Bank – has launched 6 limited edition products for their portfolio range. These products start from 4.80%, offer a free mortgage valuation and are available for loans up to £4,000,000. They're available for both purchases and remortgages on single self-contained units, HMOs and multi-unit blocks in England, Wales and Scotland.
Accord Mortgages – has reduced Buy to Let rates across all loan to value (LTV) tiers by up to 0.24%. A 2-year fix at 60% LTV reduced to 4.64% from 4.77%. This comes with a £1,995 completion fee, and the option of either free remortgage legal service or £250 cashback. A 2-year fix at 65% LTV for clients who are purchasing a property cut to 4.76% from 4.94%, which comes with a £1,995 fee and £500 cashback. A 3-year fix at 75% LTV, now priced at 4.96% (was 5.20%), which comes with a £995 fee. Remortgages, also have the option of either £250 cashback or free remortgage legal service; and for house purchasers, the product comes with £250 cashback. All of the above come with a free standard valuation.
BM Solutions – has reduced rates across their Buy to Let and Let to Buy ranges. 2-year fixed rates now start from 3.78% and 5-year fixed rates start from 4.18%.
Coventry for Intermediaries – has reduced rates across its Buy to Let range by up to 1%. The lender has also reduced its BTL stress rate: 5 Year Fixed rates or higher = 5.5% or the product rate (whichever is higher). 2 & 3Year pound-for-pound remortgages = 5.5% or the product rate + 0.1% (whichever is higher). 2 & 3Year purchases = 7.0% or the product rate +2.0% (whichever is higher).
HSBC – has reduced rates across its Buy to Let range by up to 0.30%.
Virgin Money – has reduced their 50% LTV 2- and 5-year fixed rate products with a £3,995 lender fee. The 2-year fixed rate option has reduced by 0.11% to 4.07% and the 5-year fixed rate option has reduced by 0.10% to 4.10%. Other selected fixed rates have reduced by up to 0.10%.
Precise Mortgages – has reintroduced its Refurbishment BTL range comprising of 2- and 5-year fixed rates which will be available up to 80% LTV of the after works valuation figure.
Skipton for Intermediaries – has reduced some of their Buy to Let stress rates. For products with a fixed term of less than 5 years, the BTL stress rate is reducing from 7.60% to 7.15%. For products with a fixed term of 5 years or more, the BTL stress rate will remain at 6.00%. The rate at which the lender will assess any background BTL properties is reducing from 7.60% to 6.00%.
Landbay – has cut rates across its 2-year fixed product range by 0.10% and 0.14% and added a new product. The rate reduction of 0.10% is on existing standard, first-time landlord and trading company 2-year fixed rate products. It also applies to trading company small houses in multiple occupation (HMO) and multi-unit freehold blocks (MUFB), for properties with up to six rooms or units. The standard 2-year fix at 75% LTV is now 4.69% with a 3% fee, or 5.19% with a fee of 2%. The 0.14% rate reduction is for small HMOs and MUFBs and these 2-year fixed rate products also have fee and rate options. The LTV is 75% and the product with a 3% fee has a rate of 4.75%. The product with a 2% fee is now 5.25%. A new standard 2-year fixed rate has also been launched at 5.19% plus a £1,499 fee and a maximum loan size of £74,999.
Fleet Mortgages – has cut product rates across its entire range of 2- and 5-year fixed-rate products by up to 0.20%. The 75% LTV 2-year fixes for both standard and limited company now start from 5.49%, with a HMO/MUFB 2-year fix at 5.59%.
5-year fixes for standard and limited company borrowers now start from 5.09% at 65% LTV and 5.19% at 75% LTV. HMO/MUFB equivalent products are now 5.23% at 65% LTV and 5.33% at 75% LTV. Green 5-year fixed rate products (for properties with energy performance certificate ratings at C and above) – have also been reduced to 5.09% at 75% LTV for standard and limited company, and 5.23% for HMO/MUFB.
Clydesdale Bank – has reduced fixed rates by up to 0.50%, with rates now from 4.60%.
Zephyr Homeloans – has reduced rates across their lifetime tracker products.
Aldermore Bank – has amended their minimum ICR (Interest Cover Ratio) for houses in multiple occupation (HMOs), for individual higher rate taxpayers it has reduced to 160% from 175% (when using surplus personal income, it’s reduced to 135% from 150%).
The Mortgage Lender – has reduced their BTL Ex-Pat product from 6.29% to 5.89% and has also reduced their BTL Holiday Let from 6.59% to 5.99%.
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.