More BTL lenders announce rate cuts and new products

Buy-to-Let by Foundation is among a slew of lenders to unveil new products and rate cuts designed to appeal to a wider range of landlords.

The new offerings include:

• Limited Edition Products: Two new limited edition fixed-rate deals, one for borrowers with a strong credit history and another for properties with a high Energy Performance Certificate (EPC) rating. Both offer competitive rates and are available up to 75% loan-to-value (LTV)
• Fee-Assisted Remortgage: A new remortgage product with a fixed fee and cashback to help landlords with upcoming renewal deadlines
• Reduced Rates: Further rate cuts for specialist buy-to-let properties, including short-term lets and holiday lets.

These updates come after the recent Bank of England’s base rate cut, which Foundation Home Loans believes will stimulate activity in the buy to let sector.

New Limited Edition products

Foundation’s director of product and marketing, Tom Jacob, said: “We’re very pleased to be announcing these new Limited Edition products to our core range, plus we’ve been able to make some significant rate cuts to options for both Short-Term and Holiday Let landlord borrowers.

“The new Limited Edition products should appeal to both landlords looking for a strong longer-term rate in order to give them stability of payments over that period, plus those who are either remortgaging or purchasing properties that already have an EPC of C or above.”

He added: “We’re also pleased to be able to cut rates for both Short-term and Holiday Let borrowers – a part of the market which has grown as landlords have sought the often greater levels of rental yield that can accompany these properties.”

Fleet launches new fixed-rate deals and cuts rates

Fleet Mortgages has also announced new product launches and rate reductions which include:

• New two-year fixed rates: Fixed-rate, fixed-fee products aimed at both standard and limited company borrowers, priced below 5%
• Rate cuts: Reductions across their existing two- and five-year fixed-rate products, again available for standard and limited company borrowers
• Product choice: A wider range of products at different fee levels to cater to diverse borrower needs.

Fleet anticipates a surge in remortgage activity in the coming months and their new offerings are designed to meet this demand.

‘Often felt like 5% is the ‘magic mark’

The lender’s chief commercial officer, Steve Cox, said: “It’s often felt like 5% is the ‘magic mark’ when it comes to landlord borrowers meeting affordability and securing the levels of loans they require, so it’s incredibly pleasing to be offering these new two-year, fixed-rate products, cutting existing rates, and also offering our 3% fee five-year fixed-rate product to standard and limited company borrowers below the 5% mark.

“What we are very keen to do is offer choice for advisers and their landlord clients, and clearly fee structure is an important consideration, particularly for higher loans, but also in terms of whether they wish to add these to the overall loan from the outset.

“The critical point here is that we’ve improved product choice and we’re now able to offer products below the 5% level, which should ease affordability concerns and allow landlords to secure the loans they require at a better price.”

The Mortgage Works further reduces its BTL rates

The Mortgage Works (TMW) has announced another round of rate cuts across its buy to let product range, with rates now starting from a low 3.49%.

It says the move strengthens its position as a highly competitive buy to let lender.

Joe Avarne, TMW’s senior manager of buy to let mortgages, said: “We are pleased to announce more rate cuts as it further demonstrates our ongoing commitment to brokers and landlords.

“These latest reductions make us one of the most competitive buy-to-let mortgage lenders in the sector with rates now starting from 3.49%.”

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