Latest Buy to Let mortgage product trends

Latest Buy to Let mortgage product trends

11:26 AM, 14th May 2014, About 10 years ago 3

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The good news for Buy to Let mortgage products is that they have remained mostly stable for the last two months, despite the Mortgage Market Review (MMR) and the Bank of England base rate of 0.5% on it’s five year to let mortgage

There has been very little movement in 2-3 year Buy to Let mortgage fixed rates indicating the banks and money markets still predict stability in interest rate forecasts for the medium term.

The traditional two big market players, The Mortgage Works (TMW) and BMsolutions have only extended the initial terms of their products without touching the interest rates. TMW are still offering 80% LTV and rates from 2.49%, however they will no longer consider First Time Buyers as the risk post MMR is that BTL may be seen as an easier back door route to owning property than proving income on a residential mortgage.

Kent Reliance continue to offer 85% LTV at the same rates, but have also added a 5.39% 3 year fixed 85% LTV. The only other lender to offer 85% is Interbay Commercial.

Platform were one of the few significant movers with their 2 year tracker rate at 60% LTV reducing from 3.09% to 2.49% with a flat £1,999 fee.

Overall the average change (if any) for mainstream lenders seems to have been a small fall in rates of between 0.1 and 0.2%. The odd exception being Aldermore and Principality with small rate rises of similar amounts. Although Principality still offer their same headline rate of 1.99%.

Another stand out niche lender with improved rates is Keystone who have a full range of Buy to Let mortgage products for limited companies that offer up to 80% LTV and products specifically for HMO/Multi-unit properties.

Buy to Let mortgageIf you would like to use our free Buy to Let Mortgage Calculator CLICK HERE

This calculator shows the products and lenders that will fit the loan amount required along with guidance on the maximum you could borrow. You can then print off a quote showing a break down of the product costs, interest payments and fees.

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Some One

12:51 PM, 14th May 2014, About 10 years ago

You've mentioned the fees on the Platform offerings, and I think really they need to be mentioned on all products given the size of the fees,
eg: The Mortgage Works' 2 year fix at 2.49% is in my eyes really 3.74%[1] because of the 2.5% fee.

[1] Essentially since they offer it as a fee free version at 3.74%, but mathematically there will be some slight discrepancy of a few pounds either way between the two versions.

Neil Patterson

13:30 PM, 14th May 2014, About 10 years ago

Hi Some One,

Yes you are quite correct that when you research a product for your own use you need to consider all factors.

I often explain BTL products as being like a set of kitchen scales that have to balance. What they give you in one hand they will take away in another. It is just a case of balancing the overall costs in your circumstances.

There has been a lot of scare stories about MMR and rate increases so I want to go through the market thoroughly and give a real update on what is happening. Yes some lenders and products have been affected but the vast majority of the BTL market has trundled on unaffected.

Unfortunately it is not possible in the space of an article to do a full product comparison of the market, but I have added the BTL Calculator so anyone can do their own initial market research which includes lenders fees.

Mark Alexander - Founder of Property118

18:33 PM, 14th May 2014, About 10 years ago

Superb article Neil, very reassuring 🙂

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