Buy to let mortgage cuts and new landlord deals

Landlords looking to remortgage have more deals to consider, including options for several properties held under one freehold title.

Foundation has launched three buy to let products, revised its lending criteria and cut selected rates by up to 0.30 percentage points.

Its new F1 £4£ remortgage-only two-year fix is priced at 5.24% at 75% loan-to-value (LTV), with a 4% fee and an interest coverage ratio of 125% for all applicants, assessed at the pay rate.

Meanwhile, its F1 Limited Edition remortgage-only two-year fix has fallen by 0.30 percentage points to 4.69%, with a 4% fee, a free standard valuation, no application fees and £250 cashback.

Specialist buy to let

Grant Hendry, Foundation’s director of sales, said: “Not only is this great news for landlords and property investors of all shapes and sizes, but it’s a real win for the advisers supporting them.”

He added: “Alongside expert service, flexibility and manual underwriting, this is what is expected of specialist lenders in today’s fast-paced and highly competitive market.”

Multiple property mortgages

The lender’s two new F2 two-year fixes for multiple properties on one title (MPOT) are priced at 6.79% at 65% LTV and 6.99% at 75% LTV, both with a 2.50% fee.

These products cater for landlords with up to four properties under a single freehold title, avoiding the need to split the title.

Five-year fixes in the same range have been reduced by 0.26 percentage points to 7.09% at 65% LTV and 7.29% at 75% LTV, also with a 2.50% fee.

Borrowing is now available up to 75% LTV on MPOTs that include a holiday let, while titles consisting entirely of holiday lets qualify for the normal MPOT limits of £3m at 65% LTV and £2m at 75% LTV.

Fee-free landlord mortgage

Lloyds Bank’s two-year fixed buy to let mortgage has been selected as a Moneyfactscompare.co.uk Pick of the Week following a rate reduction.

The deal is priced at 5.45%, fixed until 28 February 2029, with a maximum LTV of 75% and no product fee.

It is available to second-time buyers in Great Britain and Northern Ireland.

There are no incentives, although borrowers can make overpayments.

Moneyfacts mortgage assessment

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: “Landlords looking for a competitive rate to lock in over the next two years may find the new deal from Lloyds Bank attractive.

“After a rate reduction this week, the two-year fixed deal is now priced at 5.45%.”

She added: “While it may not carry cost-saving incentives, it does not charge an upfront fee, so it is one of the top deals in its sector.”

Bridging loan reductions

United Trust Bank has cut monthly rates by up to 0.16 percentage points across several regulated and non-regulated bridging products, covering every LTV band up to 75%, with immediate effect.

Monthly rates for regulated Core, Re-bridging and Light Refurb loans now start at 0.57%, while equivalent non-regulated products, including Medium Refurb, start at 0.60%.

Second charge rates start at 0.69% for regulated loans and 0.75% for non-regulated borrowing, with Heavy Refurb rates starting at 0.66%.

The bank has also set its Near Prime Core, Re-bridging and Light & Medium ranges at 0.20 percentage points a month above standard pricing for both regulated and non-regulated loans.

Coventry’s BTL rates

Coventry for intermediaries has also reduced all its fixed rate mortgage deals, with buy to let cuts of up to 0.12 percentage points.

Its range includes a fee-free five-year fix at 5.67%, fixed until 30 April 2032, at 75% LTV for limited company buy to let remortgages.

Jonathan Stinton, Coventry’s head of intermediaries, said: “Brokers are always looking for good value for their clients, and we want to make sure our range is working hard for them.

“By reducing rates across the board, we’re giving brokers more competitively priced options to support customers with a wide range of borrowing needs.”