Buy to let lenders cut rates and launch new deals

Buy to let lenders have rolled out another wave of rate changes, with fresh fixed deals, pricing cuts and expanded ranges appearing across multiple LTV tiers.

Paragon Bank has brought in six limited edition five-year fixed products at 60% and 75% LTV, each carrying a 5% fee.

Three new options at 75% LTV sit alongside three deals at 60% LTV launched earlier.

At the higher tier, rates begin at 4.95% for single self-contained homes with EPC ratings of A to C, edging up by 5bps for D or E-rated stock.

HMO and multi-unit block pricing start at 5.20%.

At 60% LTV, pricing starts lower at 4.80% for stronger EPC-rated properties, again increasing slightly for lower bands.

Landlords target lower rates

HMO and multi-unit block deals begin at 5.05%. Interest coverage ratios are calculated using the initial pay rate.

The products are open to landlords borrowing in personal names or through limited companies and are available on a limited-edition basis.

James Harrison, Paragon’s product manager, said: “We’ve seen a trend in landlords choosing higher fee products to secure a lower payrate.

“By cutting rates at 75% LTV and offering even better value at 60% LTV, we are aiming to ease affordability constraints for landlords and provide more flexibility in how borrowing costs are structured.”

Kensington lowers BTL rates

Kensington Mortgages has trimmed rates across its buy to let range, including Prime, Core and eKo products, with reductions of up to 0.20% on selected deals.

Core products up to 80% LTV and Prime deals up to 75% LTV have both been reduced, including HMO and multi-unit options.

Two-year 75% LTV Prime rates now stand at 5.73% with no fee, 5.39% with a £1,499 fee, and 4.34% with a 3% fee.

Five-year Prime rates at the same LTV are set at 5.49% with no fee and 5.37% with a £1,499 fee.

Within the eKo range, two-year fixes begin at 5.68% with no fee, dropping to 4.29% with a 3% fee, while five-year products start at 5.44%.

Free valuations remain in place across all buy-to-let products.

The lender’s commercial director, Andy Bickers, said: “These latest rate reductions reflect ongoing commitment to supporting landlords with competitive, flexible options.

“By lowering rates across our Core, Prime and eKo ranges, we’re ensuring brokers and their clients have access to a broad selection of products that suit a variety of needs and property types.”

Molo reduces BTL rates

Molo has also reduced its BTL pricing, covering UK residents, non-UK residents and expat borrowers.

Rates for UK landlords now start from 2.98% on two-year fixes at 55% LTV, with five-year options from 4.73%.

Specialist lending, including HMOs, multi-unit freehold blocks, new builds and holiday lets, begins at 3.14% for two-year terms.

The lender has removed pricing premiums for larger HMOs, including properties with five or more units.

Pricing for non-UK residents and expat borrowers now starts from 4.78%.

Martin Sims, Molo’s distribution director, said: “Competitive pricing remains central to helping brokers deliver workable buy to let solutions.

“These reductions strengthen our proposition across both Standard and Specialist ranges, giving brokers more scope to deliver solutions that work on affordability and long-term yield.”

Landbay adds new products

Landbay has added eight new five-year fixed products at 70% LTV within its Premier range, and reduced rates on smaller HMO deals.

The new products include standard and remortgage AVM options, with fee choices from zero to 5%.

Rates begin at 4.52% with a 5% fee, rising to 5.52% for no-fee deals.

Two-year fixed rates for 75% LTV small HMO products have been cut by 0.15%, now starting at 4.74% with a 3% fee.

Product transfer equivalents begin at 4.79%.

Landbay’s sales and distribution director, Rob Stanton, said: “The market continues to place a strong emphasis on value and certainty, particularly for landlords looking to secure longer-term fixed rates at lower LTVs.

“By introducing these new 70% LTV five-year fixes, we are giving brokers additional options to support that demand with a clear and flexible pricing structure.”

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