BTL mortgage market heats up with new deals

The buy to let mortgage landscape is becoming increasingly competitive, with new tracker and fixed rate products launched by Fleet Mortgages and Molo Finance.

Other BTL lenders, including Paragon Bank, Aldermore and Together have all also lowered rates.

Fleet Mortgages has introduced two-year tracker mortgages across its standard, limited company and HMO/multi-unit block offerings.

Standard and limited company rates begin at Bank Base Rate (BBR) plus 0.49% (currently 4.99%), while HMO/multi-unit block products start at BBR plus 0.89% (currently 5.39%).

Purchase and remortgage deals

These mortgages, available up to 75% LTV for purchase and remortgage, have an end date of 30th April 2027 and include early repayment charges.

Standard and limited company deals feature free valuations for properties up to £500,000.

Fleet’s chief commercial officer, Steve Cox, said: “This month’s decision to cut BBR, with the anticipation of potentially more rate cuts to come, means that a number of landlord borrowers might prefer a shorter-term tracker rate, especially if the Bank of England does choose to cut further, perhaps multiple times over that period.

“We’re very pleased therefore to be launching these two-year trackers which already have attractive rates, but with the possibility of a further lowering of the rate over the time period.

“Available across all our core product lines and for landlords seeking to purchase or remortgage, we believe these new trackers provide advisers with another layer of potential solutions for their buy to let clients.”

Molo unveils rate reductions

Meanwhile, Molo Finance has also announced rate reductions on its fixed rate buy to let mortgages.

Two-year fixed rates now start at 3.13%, and five-year fixed rates begin at 4.73%.

Specialist product rates for MUFBs, HMOs, new builds and investor-led properties are available from 3.38% (two-year fixed) and 4.98% (five-year fixed).

Molo’s distribution director, Martin Sims, said: “We appreciate how important it is for brokers to access competitive and stable financing for their clients.

“This latest rate reduction reinforces our commitment to remain competitive and demonstrates a prompt response to the improving market conditions.”

Other lenders with new landlord BTL deals

Paragon Bank has unveiled revamped switch and further advance deals, lowering rates by a maximum of 46 basis points.

Its two-year fixed-rate switches begin at 4.59% with a 3% fee, or 6.09% with no fee.

Five-year fixed-rate switches start at 5.39% with a 3% fee, and 5.99% with no fee.

James Harrison, Paragon’s product manager, said: “The high level of switching that we’ve seen over the past few years is set to continue this year as lots of mortgages are due to mature.

“Taking advantage of the particularly low rates on offer during the pandemic, a large number of landlords committed to five-year fixes, so these mortgages are almost certainly maturing in a higher rate environment.”

Together drops rates

Elsewhere, Together has responded to the Bank of England’s base rate drop by cutting its own rates by as much as 0.25%.

This impacts its entire commercial line, including fixed and variable buy to let and commercial term products.

Two-year fixed rates are down by 0.25%, five-year fixed rates by 0.15% and variable rates by up to 0.25%.

BTL two-year fixed rates now begin at 8.49% with a 2.5% fee, or 6.49% with a 7% fee.

Aldermore has new BTL products

Finally, Aldermore has launched new limited-edition two-year buy to let products.

These follow previous limited-edition offerings and rate decreases.

For individual and company landlords with single residential investment properties, a two-year limited-edition rate of 4.59% with a 3% fee is available up to 75% LTV (4.49% if EPC rated A, B, or C).

For multi-property landlords, the same LTV has a two-year limited-edition rate of 4.54% with a 3% fee.

Jon Cooper, Aldermore’s director of mortgages, said: “These new limited editions give landlords compelling two-year options in what’s an increasingly competitive rate environment.”

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