Five more buy to let lenders cut mortgage rates

Five buy to let lenders have cut rates as competition for landlord mortgage business steps up across the market.

Fleet Mortgages, Paragon Bank, Landbay, LendInvest and ModaMortgages have all reduced pricing, with new deals covering standard BTL homes, limited company borrowers, HMOs, multi-unit blocks and greener properties.

Fleet has reintroduced two- and five-year fixed-rate products for landlords buying or remortgaging properties with an EPC rating between A and C.

The products are available at 75% loan-to-value with a 3% fee.

Its two-year standard and limited company EPC A-C products are priced at 4.39%, while the five-year version is available at 5.04%.

BTL rates for HMOs

For HMO borrowers, the EPC A-C two-year product is priced at 4.69%, with the five-year option at 5.29%.

The lender also said its EPC A-C range and £1,000 Green Cashback feature had achieved alignment with the Green Home Finance Principles, the industry-led framework aimed at supporting finance for energy-efficient homes.

Alongside the reintroduction of the EPC A-C products, Fleet has cut rates by 10bps across existing standard, limited company and HMO five-year fixes up to 75% LTV.

Fleet’s chief commercial officer, Steve Cox, said: “We know many landlords are focused on improving the quality and energy-efficiency of their portfolios, in order to meet their future responsibilities and targets in this area.

“That can be purchasing properties which have already achieved higher EPC ratings or investing in improvements to existing stock within portfolios. Our proposition supports both approaches.”

Paragon lowers BTL rates

Paragon Bank has cut rates by 20bps across its buy to let mortgage range, with products now starting from 3.55%.

The reductions apply across two- and five-year fixed-rate products for purchase and remortgage, up to 75% LTV.

Paragon has also refreshed its fee structure, offering nil, 3%, 4%, 5% and flat £3,995 fee options.

At up to 75% LTV, two-year fixed rates now start from 3.55% on Paragon’s green mortgage range for single self-contained properties with EPC ratings of A-C.

For homes with lower energy efficiency, rates are priced 5bps higher.

Five-year BTL fixes

Five-year fixed rates at 75% LTV now start from 4.75% on green products for single self-contained properties, with the same EPC criteria and pricing differentials.

Rates on fixed products for HMOs and multi-unit blocks have also been reduced.

These are priced 15bps above equivalent green EPC single self-contained products.

Paragon said the products are available to individual landlords and limited companies across England, Scotland and Wales.

The lender’s head of mortgage sales, Jason Wilde, said: “By reducing rates across the whole range and maintaining a breadth of fee options, we’re giving landlords the flexibility to choose products that best suit their own circumstances and portfolio strategy.”

Landbay offers 50 cheaper products

Landbay has cut rates across more than 50 products in its Premier range, with reductions ranging from 15bps to 40bps.

The largest cuts apply to its Premier 75% LTV two-year fixed-rate products, where rates across 10 products have been reduced by 40bps.

Following the changes, rates now start from 3.39% with a 5% fee, rising to 5.89% for a zero-fee option.

The Premier range covers standard and HMO products for borrowers with up to 15 mortgaged properties and is available to individual and limited company landlord borrowers.

Landbay’s sales and distribution director, Rob Stanton, said: “Our focus remains on providing brokers with choice, flexibility and value.”

LendInvest offers cheaper fixed BTL mortgages

LendInvest Mortgages has cut rates by 10bps across all of its two- and five-year fixed-rate buy to let products.

The lender said its lowest rates now start at 3.84%.

The reductions apply across new business, product transfers and bridge-to-let finance, which allows borrowers to apply for a buy to let and bridging loan at the same time.

Its sales director, Paula Mercer, said: “We’re confident that this rate cut, combined with our mortgages portal and experienced teams of underwriters and case managers, will enable portfolio landlords to achieve their goals, no matter the complexity of the deal.”

Moda also lowers BTL rates

ModaMortgages has cut rates by 20bps across its limited edition two- and five-year fixed-rate buy to let products.

Its limited edition two-year fixed rates now start from 3.34% for single dwelling properties and 3.44% for HMO and multi-unit freehold block properties with up to six bedrooms or units.

Limited edition five-year fixed rates now start from 4.94% for single dwelling properties and 5.04% for HMO and multi-unit freehold block properties with up to six bedrooms or units.

The products are available to individual and limited company landlords up to 80% LTV, with a choice of fee options and free valuations across the lender’s BTL range.

Roger Morris, the group distribution director at Chetwood Bank for ModaMortgages, said: “With rates now starting from 3.34% and free valuations available across the board, we’re giving brokers and their clients even stronger options at a time when value and flexibility really matter.”