Insights and Opinions Doug Hall 05/04/2021

Buy-to-let mortgages update April

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 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. 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 launched a new buy-to-let 5-year fixed rate at 50% Loan to Value. The product is a 5-year fixed rate at 1.69%, with a £1,995 fee. There is also a 5-year fixed rate at 1.74% with a £1,995 fee, this includes a free valuation and a choice of cashback or free legal fees.

Vida Homeloans – has relaunched a shared buy-to-let exclusive product available for both limited company and individual applications which is available up to 75% Loan to Value. The 5-year fixed rates start from 3.19% with a fixed lender fee of £3,750. The product is available for loan sizes between £150,000 and £750,000 and available through selected partners including NRLA Mortgages/3mc.

Virgin Money – has reduced their 80% Loan to Value Buy to Let 5-year fixed rate product by 0.89% to 3.59%. The product has a lender completion fee of £995.

Paragon Bank – has refreshed their buy-to-let products, with rate reductions across both on their portfolio and non-portfolio ranges. There is a selection of 2- and 5-year fixed rates, available for both purchases and remortgages, all offering free mortgage valuations and some with up to £750 cashback.

Platform Mortgages – has reduced rates by up to 0.42% on their 2- and 5-year fixed rate products at 65% Loan to Value to 75% with no product fee.

Coventry for Intermediaries – has reduced the reference rate for all 5 Year plus Fixed rate calculations from 5% to 4.5%.

Metro Bank – has reduced their 5-year fixed rate stress rate to 4% with a 140% interest coverage ratio requirement.

Accord Mortgages – has increased their total maximum portfolio size for portfolio landlords from 15 to no limit on the number of properties with a limit of 10 mortgaged properties.

Leeds Building Society – has reduced the interest coverage ratio (ICR) which it applies on buy-to-let applications. For basic rate taxpayers the mutual has reduced its ICR from 145% to 125%. The ICR for higher rate taxpayers remains at 145%, for additional rate taxpayers is 150%, while for all holiday let applicants it will remain at 145%.

 

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.

All calls are recorded for training and monitoring purposes.

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.

See all articles by Doug Hall