Buy to let mortgage lenders slash ratesMake Text Bigger
Although most industry experts have predicted availability of funds will remain tight for several months, some lenders want to broaden their market share by extending borrowing to buy to let investors.
BM Solutions, part of Lloyds TSB, has two 60% loan-to-value (LTV) fixed rate loans at 4.65% for two years or 5.65% for three years.
To hook property investors, BM Solutions is offering cash backs of £300 – £490 with each deal.
Fees start at 1.5% of the amount borrowed and early repayment charges apply during the fixed rate periods.
For landlords opting for BM Solutions conveyancing, the deal improves with an extra 0.15% sliced off both rates and the cash back increasing to £790 for both mortgages. BM Solutions has also cut five other fixed rates and a tracker deal. Rate options offer two-year deals at 4.35% and 4.8%, three years at 5.5% and five years at 5.99%. A two-year tracker is priced at 4.5%.
Not to be outdone, Coventry Building Society is offering a new fixed rate buy to let mortgage via subsidiary Godiva Mortgages until March 31. Borrowers can pick up 5.39% fixed to March 31, 2016 (five years) at 65% LTV to a maximum £1 million. The package comes with a free valuation up to £700 and free legal fees – but borrowers have to pay a £250 booking fee. Early repayment charges apply, but the Coventry will let borrowers repay capital of up to 5% a year without penalty. The lender also demands a 125% rent cover of mortgage repayments.
Meanwhile, the Bank of China has cut buy to let lifetime tracker rates to bank base rate plus 1.8%. The loan has a 1% early redemption charge in the first year and a £1,895 arrangement fee. The bank is also relaxing the face-to-face interview rule for borrowers.
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