Buy to let lenders cut rates and raise loan limits

Several buy to let lenders have reduced rates and increased loan sizes across a range of products, with changes covering standard lending as well as more specialist areas.

Landbay has cut rates by 0.20% on its selected Core two- and five-year fixed products up to 75% LTV.

The changes span 15 products, including both standard and AVM options.

Two-year fixes now start at 4.19% with a 5% fee or 5.69% with a 2% fee.

Five-year fixes begin at 4.94% with a 6% fee or 5.74% with a 2% fee.

Maximum loan size

Alongside this, maximum loan sizes on standard products have been increased to £1.5m, applying to individual borrowers as well as limited company structures such as SPVs and LLPs.

Landbay’s sales and distribution director, Rob Stanton, said: “By reducing rates across our Core range and increasing maximum loan sizes, we are giving advisers greater flexibility when structuring cases, particularly where larger loan amounts are required.

“This is especially important as we continue to see activity across both remortgage and purchase business.”

Foundation’s new HMO products

Foundation, meanwhile, has introduced new products for large HMOs and short-term lets, while also cutting rates across parts of its existing range.

The large HMO products include a two-year fix at 5.29% with a 3% fee and a five-year fix at 5.99% with a 4% fee.

Short-term let products start at 5.19% for two years and 5.89% for five years.

It has also reduced pricing on standard HMO and MUFB products.

The standard HMO two-year fix has been cut by 0.25% to 4.99%, with the five-year fix reduced by 0.10% to 5.69%.

MUFB fixes now stand at 5.09% for two years and 5.79% for five years.

Within its standard range for F1 borrowers, two-year fixes are now 4.89%, with five-year fixes at 5.59%.

The lender has also reintroduced a five-year fixed product for first-time buyers and first-time landlords, priced at 6.54% with a 1.5% fee.

Foundation’s director of sales, Grant Hendry, said: “Landlord borrowers continue to seek product options for these types of properties as they look for improved yield, so we’re pleased to be able to offer both two- and five-year fixed-rate options.”

Accord increases loan size

Elsewhere, Accord has increased its maximum loan size to £1.5m on buy to let products up to 75% LTV for borrowers with at least 12 months’ landlord experience.

Loans between 75.01% and 80% LTV now reach £750,000, up from £500,000.

First-time landlords can access borrowing up to £1m at up to 75% LTV, with existing affordability rules unchanged.

Angelika Christian, the strategic partnerships and propositions manager at Accord, said: “This change recognises the significant increase in property prices in recent years, offering greater flexibility and choice for brokers supporting landlords with larger portfolios or higher-value properties.”

TMW lowers BTL rates

The Mortgage Works has also reduced rates across selected buy to let and let to buy products by up to 0.20 percentage points.

Its two-year fixed remortgage rate is now 3.74% with a 3% fee at up to 65% LTV.

A five-year fixed remortgage product is priced at 4.37% with a 3% fee at up to 55% LTV.

Another five-year option, available up to 75% LTV, has been reduced to 4.99% with a £1,495 fee. Free valuation and legal work are included.

Keir Fraser, TMW’s lead manager, said: “We’re delighted to be able to make these rate cuts as we continue to put The Mortgage Works at the forefront of the buy to let market with competitive rates.”

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