Buy to let market update: October
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. Written by Doug Hall, of NRLA mortgage partners 3mc.
Buy to Let Market Update: -
Virgin Money – has reduced nine interest rates on its core buy to let range by between 0.04% and 0.3%. The largest reduction is on the two-year fixed rate at 75% Loan to Value with a £995 fee which has reduced by 0.30% to 1.84%.
Clydesdale Bank – has temporarily removed All buy to let 2- and 3-year fixed rates up to 80% Loan to Value for less than £1m. 5-year fixed rates at 60% and 80% Loan to Value for less than £1m and fee offer 2- and 5-year fixed rates up to 75% Loan to Value.
Landbay - has reduced the rate on its special edition two-year fixed rates for both 60% and 70% Loan to Value. At 60% Loan to Value, the standard two-year fixed rate has been cut from 3.09% to 2.95%. Meanwhile at 70% Loan to Value, the two-year fixed rate has been reduced from 3.19% to 3.09%.
Pepper Money – has launched a range of Limited Company Buy to Let exclusives available through 3mc/NRLA Mortgages. The range includes five-year fixed rate products on the Pepper 48 range, at a pay rate 0.3% cheaper than the equivalent core range. It means the product is available at 3.55% up to 65 % Loan to Value, while up to 80 % Loan to Value the rate is 4.95%. The exclusives also come with a free valuation and have a maximum loan size of £500,000.
The Mortgage Works – has withdrawn their zero fee products at 75% Loan to Value for both purchases and remortgages.
Vida Home Loans – has launched Vida Flex. A Buy to Let 5 Yr. fixed rate with a 3-year early repayment period. The product has a 3.84% pay rate with a 1.75% lender completion fee and is available up to 75% Loan to Value.
Kensington Mortgages – has reintroduced their HMO and Multi Unit range. The products are available up to 75% Loan to Value with rates starting from 3.99% with a lender completion fee of 1.5%.
Santander – will no longer accept certain types of state benefit income and maintenance payments to support the minimum income requirement for buy to let mortgage applications. Landlords will not be able to use four types of state benefit income to reach the £25,000 threshold for borrowers. The incomes that will no longer be recognised are: child benefit, child tax credit, working tax credit or pension credit. Maintenance payments will also be excluded.
Platform – has temporarily withdrawn all of their new business buy to let products.
Saffron for Intermediaries – has reintroduced their buy to let range. Products are available up to 75% Loan to Value with rates starting from 3.67%.
Precise Mortgages – has reduced their core range of buy to let products which are available up to 75% Loan to Value. Rates start from 3.14%.
Kent Reliance for Intermediaries – has reduced their core range of buy to let products which are available up to 75% Loan to Value. Rates start from 3.04%.
Zephyr Homeloans – has reduced rates on a selection of their standard buy to let product range. Products are available up to 75% Loan to Value with rates starting from 3.14%.
Dudley Building Society – has launched a holiday let buy to let product for remortgages only. The product is available up to 70% and is a discounted for term rate with a current pay rate of 3.84% with a 1% lender completion fee.
Foundation Homeloans – has reduced rates across its product range for both individuals and limited companies. Among the rate cuts, it has reduced its 80% Loan to Value two-year from 4.29% to 4.09%. Within its HMO range, 5 year fixes at 75% Loan to Value for properties with up to six occupants have been reduced from 4.54% to 3.94%.
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.