BTL lenders offer rate cuts and streamlined processes for landlords

BTL lenders offer rate cuts and streamlined processes for landlords

0:03 AM, 19th April 2024, About a month ago

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Three leading buy to let lenders in the UK are offering rate cuts, faster remortgages, and simpler valuations to help landlords navigate the current market.

Landlords looking for specialist buy to let mortgages can now access cheaper deals from Shawbrook.

The lender has announced a range of reductions on its complex BTL products, with some rates dropping by as much as 0.3%.

The cuts apply to loans between £1 million and £5 million.

Fixed-rate mortgages for both five and ten years at 65% loan-to-value (LTV) now come with a reduced rate of 6.34%. For those with a 75% LTV, the rate has been lowered to 6.44%.

Shorter fixed-term options have also seen reductions with three-year fixed rates start at 6.49% for a 65% LTV, while two-year deals begin at 6.54%.

‘Competitive rates on our buy to let products’

Daryl Norkett, the director of real estate proposition at Shawbrook, said: “At Shawbrook we have always been committed to delivering competitive rates on our buy to let products.

“These latest pricing reductions demonstrate our strong appetite to support brokers and professional landlords with a wide choice of lending products.

“Customers are now able to benefit across two-, three-, five- and 10-year fixed rates which have been reduced by as much as 30 bps.”

Faster remortgages for BTL landlords with ‘Pound-for-pound’ deals

Buy to Let by Foundation has launched new ‘pound-for-pound’ remortgage products aimed at landlords who don’t want to increase their borrowing.

There are options for both borrowers with excellent credit history (F1 range) and those with minor credit blemishes (F2 range).

The ‘pound-for-pound’ approach simplifies the underwriting process, allowing Buy to Let by Foundation to offer more favourable terms.

Landlords benefit from a lower assessment of rental income coverage

It says that landlords benefit from a lower assessment of rental income coverage and stress rates based on the product’s interest rate, regardless of their tax status.

Tom Jacob, the director of product and marketing at Foundation Home Loans, said: “We’re pleased to be able to launch these two new £4£ remortgage products for buy to let landlord borrowers who are not seeking to raise any additional borrowing.

“As a result, we hope to support landlords who are focused on maintaining their existing properties/portfolios by giving them additional remortgage product options with distinct criteria to consider.”

YBS Commercial streamlines BTL mortgages with faster valuations

Portfolio landlords can now benefit from a quicker and potentially cheaper mortgage application process thanks to changes from YBS Commercial.

The lender is introducing simplified valuations for its BTL deals involving up to four properties and loans up to £3 million.

These short-form valuations will replace the more complex and time-consuming ‘red book’ valuations that are usually required.

Qualifying properties include houses and flats – though the lender’s standard lending criteria will still apply.

Change comes directly following broker feedback

Tom Simpson, the managing director of YBS Commercial Mortgages, said: “This change, like so many of the improvements we’ve implemented this year, comes directly following broker feedback and will save customers money – in some cases significant amounts – on valuation fees, as well as reducing the time it takes for valuation reports to be completed.

“This, in turn, will reduce the overall time to case completion, improving the customer experience for borrowers.”

He adds: “Given the current climate, which has seen landlords struggling to manage their costs in a higher rate environment, we hope this will be a welcome step.”

For assistance with any type of buy to let (BTL), property or commercial finance please complete the contact form below:

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