BTL lenders unleash a fresh wave of rate cuts and flexible options

The buy to let mortgage market is still seeing major specialist lenders unveiling rate cuts, revamping criteria and fresh lending structures.

Foundation Home Loans is rolling out new two-year discount products and trimming prices across its existing range.

The lender has introduced no ERC discounts linked to Bank Base Rate and reduced the cost of its ERC3 deals.

The ERC3 option fixes for five years but ties the borrower in for only three, giving landlords the mix of stability and optionality they have been requesting.

Foundation’s BTL discounts

Its F1 five-year ERC3 product has been cut by 0.10% to 5.54% at 75% loan to value with a 1% fee.

The F1 two-year discount is now 5.94% after a 0.05% reduction, also at 75% loan to value and carrying a 1.5% fee with no penalties.

New F2 discounts have been added at 5.99% for standard properties, 6.09% for HMOs with up to six occupants and 6.19% for multi-unit freehold blocks.

All sit at 75% loan to value and carry no early repayment charges.

The lender’s director of product, Tom Jacob, said: “Landlords continue to balance opportunity with requirements for ongoing flexibility when it comes to their mortgage finance requirements.

“That need for both certainty and flexibility remains one of the key priorities we hear from our broker partners in terms of what they can offer landlord borrowers.”

Paragon’s multi-property proposition

Paragon Bank has launched a multi-property mortgage proposition designed for landlords looking to finance several properties at once.

Between four and 99 properties can be included in a single application.

Landlords can select any mix of purchase or remortgage products across Paragon’s full range and can include single units, HMOs or multi-unit blocks in one case file.

Each property can complete at its own pace under one umbrella application overseen by a single underwriter.

Paragon has removed application fees, delivering a saving of £299 per property including for HMOs and multi-unit blocks.

Only one legal advice certificate is required regardless of the number of properties, which could reduce legal costs further.

Russell Anderson, the bank’s commercial director, said: “The launch of our multi-property proposition sets us apart from peers as it gives landlords a quick and cost-efficient way of adding a number of properties in one go, but the flexibility to manage those transactions individually.”

Together revamps BTL remortgages

Together has increased the loan to value limits across several product lines with BTL remortgages and second charge loans rising from 70% to 75%.

The same uplift applies to regulated first charge remortgages and unregulated residential bridging refinance up to £1 million.

The group says the changes are aimed at helping customers transition more smoothly from bridging to longer term funding and create room for more complex scenarios.

Its managing director of intermediary sales, Tanya Elmaz, said: “Increasing the LTV for BTL remortgages to 75% is particularly significant, as it enables more customers to exit bridging loans, aligning the remortgage LTV with Together’s bridging LTV and creating a smoother transition for property investors.”

ModaMortgages lowers BTL rates

ModaMortgages has also entered the fray with a round of reductions of up to 15 basis points.

Rates for single dwellings now begin at 2.99% for two-year fixes and 4.59% for five-year products.

HMO and MUFB pricing start at 3.09% and 4.69% respectively.

Lending reaches up to 80% loan to value, covers personal and limited company borrowers and includes free valuations with varied fee structures.

Chetwood’s group sales director, Darrell Walker, said: “We’re pleased to announce rate reductions of up to 15bps across our entire buy to let product range.

“This move reinforces our commitment to providing competitive options for brokers and their landlord clients in an ever-changing market environment.”

Moneyfactscompare.co.uk highlights TSB

Moneyfactscompare.co.uk has also highlighted TSB’s decision to shave prices across select fixed rates.

One of the more notable updates is the five-year deal at 75% loan to value, now priced at 4.19% until January 2031.

The lender charges a £995 fee and offers a free valuation.

Overpayments are permitted and the product carries an Excellent Moneyfacts rating.

Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Landlords searching for a competitive deal may find this enticing as it charges a reasonable £995 fee, which is offset by a free valuation incentive.”

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