More buy to let lenders cut landlord rates

Landlords facing remortgage decisions have been handed fresh buy to let options as lenders cut rates, restore higher-LTV products and widen criteria for more specialist cases.

The Mortgage Lender, Molo, Fleet Mortgages and Coventry for Intermediaries have all announced changes aimed at brokers working with landlord clients, with new rates and products covering standard buy to let, HMOs, semi-commercial property and limited company borrowing.

The Mortgage Lender has cut its buy to let rates by up to 0.35% and relaunched selected 75% loan-to-value products across two-year and five-year fixed rates.

Its standard BTL rates now start from 4.14%, while products for houses in multiple occupation and multi-unit blocks begin from 4.29%.

No portfolio size cap

The lender said the return of 75% LTV products gives brokers more options for landlords seeking lower-leverage borrowing.

Its criteria include loans of up to £3 million per property, up to £5 million per customer and no set cap on portfolio size.

Sales and distribution director, Louise Apollonio, said: “By reducing rates and reintroducing 75% LTV products, we’re giving brokers more ways to place cases confidently, whether that’s for lower leverage borrowing or more complex properties like HMOs.”

Molo unveils semi-commercial deals

Molo has launched a semi-commercial mortgage proposition covering freehold properties with residential units above commercial premises.

The proposition is aimed at mixed-use assets including restaurants, newsagents and other commercial premises with homes above them.

Loan sizes range from £45,000 to £3 million, with Molo saying the range is intended to help brokers place smaller semi-commercial cases that can fall outside traditional lending appetite.

The products are available on five-year fixed rates only, with rates starting from 6.55% at 75% LTV and 6.85% at 65% LTV.

Molo’s criteria allow up to 75% LTV for non-fire-risk properties, up to 65% LTV for fire-risk properties on a case-by-case basis and require the commercial element to account for no more than 40% of the total floor area.

The lender’s distribution director, Martin Sims, said: “Semi-commercial has traditionally sat in an ‘in-between space’ for some borrowers and brokers.

“Cases are often too complex for standard buy to let underwriting, but at the same time they do not necessarily warrant the heavier process and structure that goes along with large-scale commercial lending.”

Fleet’s five-year deals

Fleet Mortgages has reintroduced zero-fee and fixed-fee five-year fixed-rate BTL mortgages across its standard and limited company ranges.

The products are available for purchase and remortgage at 75% LTV, with the zero-fee option priced at 5.89% and the fixed £3,999 fee option at 5.59%.

Both products have a minimum loan size of £25,001.

The fixed-fee mortgage has a maximum loan size of £750,000, while a free valuation is available on loans up to £500,000.

Each product carries a £199 application fee.

Fleet’s chief commercial officer, Steve Cox, said: “By reintroducing these product options, we can offer advisers and their landlord clients further choice depending on how they want to structure their borrowing.

“Some will want to keep upfront costs as low as possible, particularly in the current environment, while others will be focused on securing a lower rate over the fixed term, even if that means paying a higher fee at the outset.”

Coventry’s lower BTL rates

Coventry for intermediaries has also reduced selected buy to let rates, with cuts of up to 12 basis points.

The new options are available for new and existing customers, including a 5.23% five-year fixed rate to 30 November 2031 at 75% LTV with a £1,999 fee for limited company buy to let.

Its head of intermediary relationships, Jonathan Stinton, said: “With borrowers and brokers closely watching every rate movement in what’s been a fast-moving market, small changes can make a difference to advice.

“By reducing rates across key buy to let products, we’re giving intermediaries more choice when recommending the most suitable solutions for their clients.”

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