Buy to Let Market Update February 2024
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 31/01/2024.
Buy to Let Market Update: -
The Mortgage Works – has reduced rates for new customers by up to 0.15 per cent, with pricing beginning from 3.54 per cent. This is the second rate cut in a week as the firm lowered select rates by up to 1.2 per cent.
Its two-year fixed rate for purchase and remortgage at 65 per cent loan to value (LTV) has fallen by 0.15 per cent to 3.54 per cent. It has a three per cent lender fee. The lender’s two-year fixed rate for purchase and remortgage at 75 per cent LTV has decreased by 0.05 per cent to 3.94 per cent. It has a £3,995 lender fee.
The five-year fixed rate for purchase and remortgage at 55 per cent LTV has gone down by up to 0.1 per cent to 3.84 per cent. It has a three per cent lender fee.
BM Solutions – has reduced the minimum stress rate for all two-year product applications. The lender has also reduced rates across their Buy to Let and Let to Buy range and introduced a tracker range.
Virgin Money – has reduced rates by up to 0.65 per cent. Two and five-year fixed rates with a £2,195 fee have decreased by 0.32 per cent and 0.29 per cent respectively. Pricing now starts from 4.2 per cent. Two and five-year fixed rates with a one per cent fee have reduced by up to 0.65 per cent and 0.3 per cent and begin with 4.64 per cent and 4.34 per cent respectively. Two and five-year fixed rates with a three per cent fee have fallen by 0.45 per and 0.37 per cent. Rates begin from 3.87 per cent and 3.97 per cent respectively. The lender has also increased the maximum term to 40 years.
NatWest – has reduced Buy to Let purchase rates by up to 0.48 per cent and Buy to Let remortgage rates by up to 0.40 per cent.
Accord Mortgages – has reduced Buy to Let rates by up to 0.95 per cent.
Coventry for Intermediaries – has reduced Buy to Let rates by up to 0.22 per cent.
Santander – has lowered its Buy to Let affordability rates. Its standard affordability rate has decreased from 8.04 per cent to 7.38 per cent, while the five-year fixed affordability rate has reduced from 6.54 per cent to 5.88 per cent. The affordability rate for its pound-for-pound remortgage has reduced to 5.88 per cent, down from 6.54 per cent.
Paragon Bank – has reduced the Paragon reference rate, from 5.5 per cent to 5 per cent, interest coverage ratios (ICR) are calculated in line with initial rates, except for sub-5 per cent products whereby ICRs are calculated at 5 per cent.
The lender has also extended its maximum loan term from 25 to 35 years, while reducing the amount of experience Buy to Let landlords are required to have for HMO & MUB applications, down from a minimum of three years to two.
The lender has also updated the range of NRLA member shared exclusive products. All of these products offer a free valuation, no application fee and £1,000 cashback (usually £750 on Paragon core range products).
Precise Mortgages – has reduced rates on its Buy to Let products. The lender’s two-year fixed rates now start from 4.19 per cent. And its five-year fixed rates start from 4.29 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 products. The lender’s two-year fixed rates now start from 4.29 per cent.
And its five-year fixed rates start from 4.39 per cent.
Aldermore Bank – has reduced rates across their Buy to Let range including HMOs and multi-unit freehold products. The five-year fixed with a 7 per cent lender fee reduced to 4.39 per cent for individuals and companies and 4.29 per cent for multi property with single residential investment properties up to 75 per cent LTV.
Fleet Mortgages – has reduced rates on all two, five and seven-year fixes across its three core ranges: standard, limited company and HMO/multi-unit block.
Landbay - has incorporated automated valuation models (AVM) to speed up offer times significantly. AVMs are available on the
Landbay standalone range of five-year fixed rates with a maximum property value of £750,000 at 70 per cent loan to value (LTV).
Rates begin from 4.39 per cent and are stressed at the pay rate.
An AVM combines mathematical or statistical modelling with databases of existing property data and property transactions to calculate property and rental values.
Birmingham Bank – has launched a new range of limited edition Buy to Let products. Rates now start from 4.2 per cent with a selection having a free standard valuation. Their products are distributed via a select number of brokers including 3mc/NRLA Mortgages. As part of the current product choice, all NRLA members will qualify for an additional £250 cashback at completion.
United Trust Bank - has reduced Buy to Let rates by up to 1.3 per cent. Rates now start from 5.34 per cent, with a reduced ICR (Interest Cover Ratio) and increased maximum LTV.
Vida Homeloans – has reduced Buy to Let rates by up to 0.8 per cent. A Vida 36 standard five-year fix has reduced to 5.04 per cent at 75 per cent LTV and a standard limited edition two-year fix now starts from 6.00 per cent at 65 per cent LTV or 6.20 per cent at 75 per cent LTV, available at the same price point for individual units, HMO or MUB.
The Mortgage Lender (TML) – has reduced selected Buy to Let rates with rates now starting from 4.66 per cent for a five-year fixed product up to 75 per cent LTV, with a 5 per cent lender fee.
Zephyr Homeloans - has reduced rates across its five and two-year fixed rate mortgages by 0.65 per cent and 0.55 per cent, respectively.
Metro Bank – has launched new products with two-year fixed rates starting from 3.99 per cent at 65 per cent LTV with a five per cent lender fee and five-year fixed rates from 4.59 per cent at 65 per cent LTV with the same fee. The lender has also removed its 5.5 per cent minimum stress rate requirement on five-year fixed rate products and all pound-for-pound remortgages and will now stress at pay rate plus 0.5 per cent.
InterBay (part of One Savings Bank) - has relaunched its full product range with reduced rates and new products to help landlords with commercial and semi-commercial options. Whilst the core range includes reduced rates across both commercial and semi-commercial products, the select range, which landlords can access via Select partners including 3mc/NRLA Mortgages, includes reduced rates across both commercial and semi-commercial ranges, new commercial investment and owner occupier products, a new range dedicated to purpose-built student accommodation and the re-introduction of a holiday let range.
- 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.