Buy to let tracker rates cut as lenders expand choice

Landlords are being offered lower buy to let tracker rates and the freedom to leave some deals without early repayment charges from lenders.

Five-year tracker mortgages are also being added to the options available to borrowers seeking an alternative to a fixed rate.

YBS Commercial Mortgages has introduced a five-year BTL tracker at 4.90%, comprising Bank Base Rate plus 1.15%, available up to 75% loan to value with a 2% arrangement fee.

Its equivalent deal for large multi-unit freehold blocks costs 5.14%, or Base Rate plus 1.39%, with the same borrowing limit and fee.

The lender’s managing director, Angela Norman, said: “Broker feedback has consistently highlighted a desire for a wider range of tracker options, particularly for landlords seeking greater product flexibility over a longer period.

“Our new tracker products address that demand directly, giving investors more choice and value alongside traditional fixed rate and shorter-term options.”

Tracker exit charges

Meanwhile, LendInvest has removed early repayment charges across its buy to let tracker range, allowing borrowers to refinance, repay or leave during the initial term without an exit penalty.

The lender has also cut initial pay rates throughout the range, which it says will improve affordability assessments under interest coverage ratio checks.

Maximum loan to value limits have risen from 70% to 75% for holiday lets, small multi-unit freehold blocks and large houses in multiple occupation.

A dedicated tracker range for large multi-unit freehold blocks has also been introduced for portfolio landlords.

Commercial mortgage discounts

Atom bank has simplified its commercial mortgage pricing, reducing the number of price points per product to limit potential rate movements during an application.

Discounts total up to 0.70%, depending on loan size, with the largest reductions applying to borrowing between £800,000 and £2m.

The bank continues to offer discounts of up to 0.25% for properties with an EPC rating of B or above and applications with debt service coverage or interest coverage ratios of 200%.

Its enhanced broker procuration fee of 1.75% has been extended to applications submitted before 31 March 2027.

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