Insights and Opinions Doug Hall 02/06/2021

Buy-to-let market update June 2021

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.

Buy to Let Market Update: -

Landbay – has created the first ever HMO exclusive mortgage product for NRLA Members. If you are looking for buy-to-let finance with fixed payments for the next 5 years, this exclusive product has a 0.20% reduction in the pay rate when compared to the lenders core range. In addition, the lender completion fee is 0.25% cheaper. This product is available for the remortgage and purchase of rental property including lending to SPV Limited Companies (Special Purpose Vehicle) up to 75% Loan to Value.

The Mortgage Works – has made rate cuts to its two-year remortgage deals, but has increased rates across its limited company range. The buy-to-let lender’s new remortgage deals include a two-year fixed at 1.39% up to 65% Loan to Value with a £1,995 fee or at 1.59% with a £995 fee. It will also offer a remortgage-only two-year fixed at 1.79% up to 75% Loan to Value with a £995 fee. All three deals mentioned come with free legals and valuation.

One Savings Bank – has made changes and implemented both new criteria and products across their Precise Mortgages, Kent Reliance and InterBay Commercial brands. Precise Mortgages have launched 2 new products for both personal ownership and limited company. There is a new 2-year fixed product at 2.99% with 1.5% fee and a refund of valuation plus £300 cashback. There is also a new 5-year fixed product at 3.49% with 1.5% fee and a refund of valuation plus £300 cashback. Kent Reliance has introduced a specialist Buy to Let limited edition range with rates now starting from 3.24%. InterBay Commercial has launched into the holiday let market with rates starting from 3.84% with Loan to Values up to 70%.

BM Solutions – has applied rate reductions for remortgage and Let to Buy products for both 2- and 5-year fixed rates at 60% Loan to Value and 75% Loan to Value.

Virgin Money – has reduced their 80% Loan to Value Buy to Let 2-year fixed rate product by 0.23% to 3.36%. The product has a lender completion fee of £995. They have also introduced new products and applied rate reductions including purchases and portfolio landlord purchases with rates reduced by up to 1.06%.

CHL Mortgages – Is the newest BTL lender to enter the market. The intermediary-only specialist buy-to-let lender, has launched its new BTL product range with a limited group of directly authorised brokers and selected partners including NRLA Mortgages/3mc. The range includes options to cover a range of property types including HMOs, Multi Unit’s, new build, ex local authority and properties above/adjacent to commercial. Minor adverse can also be considered, as well as first time landlords on certain products. 5-year fixed rates starting from 3.10%.

Pepper Money – has launched a limited-edition 5-year fixed rate Pepper 60 product available to 75% Loan to Value where rent is calculated at the pay rate of 3.18%.

Paragon Bank – has refreshed their portfolio range of products. The changes include a reduction in the 5-year fixed rates for both single self-contained properties and HMO/Multi Unit blocks and two new 5-year fixed rates priced at 3.25% with a fixed fee of £10,000.

Leeds Building Society – has re-entered 75% Loan to Value lending on buy to let with two new products, as well as entering holiday let at 75% Loan to Value for the first time. 2-year fixed rate buy-to-let products start at 2.14% with a 5-year fixed rate available from 2.44%, both with a £999 fee. A 5-year fixed rate holiday let product is also available at 4.24% with no product fee.

 

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.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

ANY PROPERTY USED AS SECURITY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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Doug Hall

Doug Hall Director 3mc

Doug Hall is a director of 3mc; a specialist mortgage provider within the buy-to-let sector. 3mc have been established for over 21 years working with lenders, mortgage intermediaries and the Residential Landlords Association (RLA) providing all types of buy-to-let mortgage solutions.

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