Partners and Suppliers Doug Hall 07/12/2023

Buy to Let Market Update December 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 01/12/2023.

Buy-to-let market update

The Mortgage Works – has reduced rates by up to 0.3 per cent across its limited company and HMO range for new customers. The limited company rate reductions include one-year fixed rate (purchase and remortgage) at 5.19 per cent with a 2 per cent fee, available up to 75 per cent LTV. Two-year fixed rate (purchase and remortgage) at 5.19 per cent with a 3 per cent fee, available up to 75 per cent LTV. Five-year fixed rate (purchase and remortgage) at 4.89 per cent with a 5 per cent fee, available up to 70 per cent LTV. The lender has also updated its existing portfolio affordability assessment with the maximum LTV increased to 75 per cent from 65 per cent for portfolios with 11 or more properties. The stress rate reduced to 5 per cent from 5.25 per cent and it has  increased the aggregate portfolio LTV to 75 per cent where Nationwide BTL exposure is over £1m.

BM Solutions – has made improvements to the way it assess the affordability for mortgage applications. The changes include reduced minimum stress rate for all two-year fixed applications. Reduced pay rate plus margin for two-year fixed like-for-like applications. Aligned minimum and pay rate plus margin for all five-year fixed applications. The lender has also reduced rates across its Buy to Let and Let to Buy range.

Virgin Money – has reduced Buy to Let rates by up to 0.28 per cent, with rates starting from 4.62 per cent.

Santander for Intermediaries – Selected Buy to Let fixed rates have reduced by between 0.05 per cent and 0.17 per cent.

Accord Mortgages – has reduced Buy to Let rates by up to 0.3 per cent for two-year fixed rates, 0.25 per cent for five-year fixed rates and three-year fixed rates by up to 0.15 per cent.

Metro Bank – has enhanced its Buy to Let stress rates and reduced pricing in its Buy to Let product range. The two-year fixed rate stress rate is the pay rate plus two per cent and for five-year fixed rate pound-for-pound remortgages, the stress rate stands at the pay rate and plus 0.5 per cent.

The stress rate, only applicable for portfolio landlords, for their background portfolio is 5.50 per cent. Buy-to-let two-year fixed rates start from 4.79 per cent with a four per cent fee or 5.79 per cent with a £1,999 fee. Five-year fixed rates begin from 4.99 per cent with a four per cent fee or 5.49 per cent with a £1,999 fee.

HSBC – has reduced Buy to Let rates by up to 0.2 per cent.

Paragon Bank has reduced rates on thirteen of its fixed-rate Buy to Let mortgages by up to 0.4 per cent. The lender has also reduced rates across eight of its two-year fixed-rate products as well as launching a new flat fee product.
Rates start from 4.19 per cent for landlords purchasing or remortgaging single self-contained (SSC) properties EPC rated A-C. The rate, available at up to 70 per cent loan-to-value (LTV), increases by 0.05 per cent when financing homes with EPC ratings of D or E. Interest coverage ratios (ICR) are calculated at 6.19 per cent and 6.24 per cent respectively, and the product fee is set at 5.00 per cent.

Paragon has also reduced five of its five-year fixed-rate mortgages by up to 0.2 per cent. Rates start at 4.69 per cent for landlords financing single self-contained properties with an Energy Performance Certificate rating of A-C, increasing to 4.74 per cent for homes rated EPC D or E and 4.94 per cent when borrowed on houses in multiple occupation (HMO) or multi-unit blocks (MUB). These limited-edition products are available at up to 70 per cent LTV subject to a 7 per cent product fee and ICRs are calculated at 5.50 per cent.

All products are available to landlords applying via limited company structures or in personal name in England, Scotland and Wales and come with a free valuation and £299 application fee. The lender has also launched a range of NRLA member shared exclusive products available through selected brokers, including 3mc/NRLA Mortgages. Along with additional product benefits, the products also come without a lender application fee, saving the member £299.

Precise Mortgages – has reduced rates on its mortgage Buy to Let products. The lender’s two-year fixed rates now start from 4.39 per cent. And its five-year fixed rates start from 4.80 per cent. The reductions come with options for personal ownership, limited company, HMO and limited company HMO landlords.

Kent Reliance for Intermediaries - has reduced its Buy to Let rates, with reductions of up to 0.3 per cent across its core range at 75 per cent loan to value (LTV). It has also added a limited-edition option at 70 per cent LTV, with rates starting from 4.59 per cent. 
Additionally, the lender has updated its HMO policy to allow up to 20 beds instead of 10. 

For HMO applications against properties with up to six beds, the interest coverage ratio (ICR) will be based on 125 per cent for limited companies and 140 per cent for individual borrowers. On larger HMOs with up to 20 beds, ICR will be calculated on 145 per cent for limited company and 175 per cent for personal ownership.

Aldermore Bank – has launched a five-year fixed product to its Buy to Let range at 65 per cent loan to value (LTV). This is a limited-edition deal with a seven per cent fee and a rate of 4.69 per cent. The lender has also added the limited-edition five-year fix at 75 per cent LTV with a five per cent fee to its core offering. 

Additionally, its fee-free five-year fix has been relaunched with a rate of 6.29 per cent. These products are available to individual and limited company landlords with single properties. 

Within the same offering, five-year fixed rates have been cut by 0.2 per cent and two-year fixes have been reduced by 0.35 per cent.

For individual and limited company landlords with multiple properties, the limited-edition five-year fix at 65 per cent LTV with a seven per cent fee has a rate of 4.59 per cent. Aldermore has also relaunched the fee-free five-year fix in this range, which is priced at 6.19 per cent.

Fleet Mortgages – has cut rates on all its standard and limited company five-year fixed rates. The rate cuts include 0.20 per cent cuts across its 70 per cent loan to value (LTV) product now at 5.14 per cent and 75 per cent LTV at 5.54 per cent. The lender is offering a green five-year fix product on properties with an EPC rating between A-C, available up to 75 per cent LTV, which it has cut to 5.44 per cent.

The standard/limited company five-year fix at 70 per cent LTV comes with a five per cent fee, while all other five-year products come with a three per cent fee. The lender has also reduced standard and limited company two-year fixed products by 0.2% and tracker products by 0.5%.

Landbay - has announced rate reductions across its two-year and five-year fixed rate products. Rates on the two-year fixed standard and like-for-like range have been reduced by 0.2 per cent. The rates now start at 4.39 per cent.

The like-for-like range is stress tested at pay rate plus 1 per cent instead of the standard calculation of pay rate plus 2 per cent and is suitable for landlords looking to remortgage with no changes to their borrowing requirements.

Both two-year and five-year fixed products for small HMOs and MUFBs, as well as five-year fixed products for trading companies have been reduced by 0.15 per cent. The lender has also launched a new semi-exclusive Automated Valuation Model (AVM) range available through selected brokers including 3mc/NRLA. 

Birmingham Bank – is the newest lender to enter the Buy to Let market. Its products will initially be distributed via a select number of brokers including 3mc/NRLA Mortgages. As part of the launch, all NRLA members will qualify for an additional £250 cashback at completion. The lender will offer single or multiple property loans to Buy to Let landlords. Specialising in standard buy to let properties, flats, small HMOs up to 6 rooms and small MUFBs up to 6 units. A portfolio loan can include the same or mixed property types. By including different yielding properties, leverage can be achieved through a blended ICR approach.

United Trust Bank - has restructured its Buy to Let product range, simplifying the choice and reducing rates across the range. The lender has made some fundamental changes to the way in which  different property types fit into its standard, specialist and non-standard product categories. Several property types have been moved into the standard category and are subsequently eligible for rates up to 2.35 per cent pa lower than previously.

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.

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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Doug Hall

Doug Hall Director, 3mc

Doug Hall is a director of 3mc; a provider within the mortgage sector. 3mc have been established for over 27 years working with lenders, mortgage intermediaries and the National Residential Landlords Association (NRLA) providing all types of buy-to-let and residential mortgage solutions.

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