Buy to let mortgage war hots up with rate cuts

Buy to let mortgage war hots up with rate cuts

12:28 PM, 13th January 2011, About 14 years ago

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The buy to let mortgage war is hotting up as more lenders cut rates as they grapple with each other to grab a larger share of the market.

Landlords are not likely to make property investment mortgages easier to access – lenders are just vying with each other to attract business to their companies rather than rivals.

So criteria for borrowing is still tight and little, if any, further funds are available.

For those landlords that can jump through all the underwriting hoops to qualify for a mortgage, the biggest player in the market, The Mortgage Works (TMW) has cut rates by up to 0.55%.

TMW – the buy to let lending arm of The Nationwide – has also revamped several mortgage products for landlords seeking to borrow or remortgage by offering:

• New two and three year fixed rate deals up to 75% loan-to-value (LTV)

• Lower rates cut by up to 0.45% on remortgages with free standard valuation and free standard legal fees

• Let to buy rates cut by up to 0.55% for reluctant landlords

• New two-year fixed rate 75% LTV deals with a fee of £995 for let to buy and first time landlords

Tracie Pearce, of The Mortgage Works, said: “The improvements we’re making to our buy to let range demonstrate our commitment to both customers and intermediaries, by offering a range of products that suit a variety of needs. We regularly review our mortgages to ensure their relevance and competitiveness in the market place and these changes are a further example of that.”

Platform Home Loans has also launched a new range of buy to let mortgages with a view of growing lending by up to 30% in 2011.

The lender admits that lending an additional 30% sounds good – but in reality the company has a small share of the market and tripling lending makes little more available in terms of the buy to let sector.

Platform, The Co-operative Bank’s dedicated intermediary mortgage lender has also announced new one to four year fixed rate buy to let loans along with two and three year trackers. All have either a £2,495 or 2.5% of the loan arrangement fee.

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