BTL mortgage market sees new products and rate cuts

Several buy to let lenders have unveiled new mortgage products and have reduced rates to meet landlords’ needs.

Fleet Mortgages has unveiled new two-year fixed-rate options and trimmed rates on its existing two-year deals.

For standard and limited company borrowers, a £1,999 fixed-fee product at 5.19% and a zero-fee alternative at 5.69% are now available, both up to 75% loan-to-value (LTV).

For houses in multiple occupation (HMO) and multi-unit freehold blocks (MUFB), a zero-fee option at 6.09% has been introduced.

Fleet has also reduced rates by 10 basis points on existing two-year fixes, with 3% fee products now at 4.04% for energy-efficient properties (EPC A-C) and 4.14% for others, while a £5,499 fixed-fee deal is now 4.64%.

The lender’s chief commercial officer, Steve Cox, said: “We’re pleased to be launching these new two-year fixed-rate products, including both fixed-fee and zero-fee options, which are designed to offer greater flexibility for a wider range of borrowers.

“By reducing pricing on our existing two-year fixes as well, we’re responding to the growing demand we’re seeing from clients who want short-term certainty without necessarily wanting to lock in for too long.”

Landbay improves product transfer offer

Landbay has enhanced its product transfer (PT) offering, adding options for additional borrowing and overpayments.

Landlords can now access extra funds during the PT process for property upgrades or capital raising without remortgaging and make overpayments until completion.

The lender has also streamlined its application process by integrating background portfolio uploads for stress testing.

Sales and distribution director, Rob Stanton, said: “From launch, we were clear that we would continue to develop our PT range to make sure it delivers as much value as possible.

“Adding both overpayments and additional borrowing is a clear example of this and an important next step.”

HMO products boosted by YBS

YBS Commercial Mortgages has boosted its HMO offering by tailoring products to property size and increasing borrowing limits.

For HMOs with up to six bedrooms, the maximum LTV is now 75% of the lower of market value or vacant possession value, with a five-year fixed rate reduced to 5.45%.

For larger HMOs with seven or more bedrooms, the LTV is 70%, with rates starting at 5.65%.

Landlords can now borrow up to £3 million per property, with a maximum exposure of £10 million.

YBS’ managing director, Angela Norman, said: “We’re delighted to tailor our offering – based on feedback from brokers – and making our products more accessible to a wider cross-section of landlords.”

Best BTL products for landlords

Moneyfactscompare.co.uk is highlighting two standout buy to let products this week.

NatWest’s two-year fixed-rate mortgage at 60% LTV, now at 4.17% until 30 September 2027, includes a £995 fee and a free valuation.

Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Alongside extending end dates by one month, NatWest has also reduced selected fixed rate mortgages by up to 0.17%.

“One deal to see this cut is the two-year option at 60% loan-to-value, which is now priced at 4.17% until 30 September 2027.

“Landlords looking to save on the upfront cost of their deal may also find this an enticing option as it charges a reasonable £995 fee which is then offset by a free valuation incentive.”

The platform is also flagging up TSB’s five-year fixed-rate deal at 75% LTV, reduced to 4.34% until 31 October 2030, which comes with a £1,995 fee and a free valuation.

Ms Eastell said: “TSB has reduced a selection of its buy to let fixed rate mortgages for landlords by up to 0.25% this week.

“One deal to see a slightly smaller 0.05% cut is the five-year option at 75% loan-to-value, which is now priced at 4.34% until 31 October 2030.

“The deal continues to carry a slightly larger £1,995 product fee but this is partially offset by its free valuation incentive.”

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