Lenders cut BTL rates and unveil new products

Lenders cut BTL rates and unveil new products

0:01 AM, 21st May 2024, About a month ago

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The UK’s buy to let mortgage market is seeing activity from several lenders with announcements of rate cuts, new product launches and simplified remortgage options.

Among them is Fleet Mortgages which is targeting limited companies with new 65% loan-to-value (LTV) fixed-rate products.

It is offering a zero-fee option at 5.64% and a 5.44% option with a £1,999 fee.

Fleet says it is also reducing rates on existing 65% LTV standard products by 20 basis points.

Launching new 65% LTV five-year fixes

Fleet’s chief commercial officer, Steve Cox, said: “This week we have been able to turn our attention to our limited company range, launching new 65% LTV five-year fixes, with zero and fixed fee options.

“We’ve also been able to cut rates by a significant 20 basis points for standard 65% LTV five-year fixes, again with both zero and fixed fee options.”

He adds: “Our aim here is to present advisers with a variety of options for their landlord clients, whether they want a lower rate with a fixed fee in order to help meet affordability, or they want a zero-fee option.”

Reduced rates and more options

Kent Reliance for Intermediaries has launched new products with reduced rates and more options. They include:

  • Reduced rates on mortgages with a loan-to-value (LTV) of 75%
  • New lower LTV options: 55% and 65% LTV for fixed-rate mortgages over 5 years
  • They’re now offering mortgages for large multi-unit freehold blocks (MUFBs) with up to 20 units.

Group intermediary director, Adrian Moloney, said: “We’re delighted to be able to lower our rates for 75% LTV options making them more competitive whilst also introducing 55% & 65% LTV options for five-year fixed rates.”

Landbay makes remortgaging easier with streamlined affordability

The third lender making an announcement is Landbay which is enhancing its remortgage offering with the introduction of new two-year fixed and tracker products.

These products come alongside Landbay’s recently launched simplified affordability assessment, which uses a pay rate calculation instead of the standard pay rate plus 2%.

The lender says this change to ease the burden on landlords remortgaging at higher rates.

New fixed and tracker options

Rob Stanton, the lender’s sales and distribution director said: “Following high demand and positive feedback on our new reduced stress test, we’re thrilled to be able to enhance our like-for-like range further with new fixed and tracker options.

“While the new products bolster the toolkit of our broker partners, the enhanced affordability calculation gives some much-needed breathing space to those landlords remortgaging onto a higher rate than before.

“It proves to be a popular option for those thinking short-term and do not require any capital raising.”

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