Two more BTL lenders cut rates to support landlords

Two major buy to let lenders, Accord Mortgages and Landbay, have announced rate reductions on their products that will help landlords facing affordability challenges.

Accord Mortgages has reduced its interest coverage ratio (ICRR) rates, which are the stress rates applied to BTL affordability calculations.

This means more landlords can qualify for mortgages and will be beneficial for landlords remortgaging on a like-for-like basis or purchasing new properties.

‘Challenging for landlords’

Accord’s senior manager for new propositions, Nicola Alvarez, said: “Things have been extremely challenging for landlords in recent times, so, as a buy to let lender, we’re constantly reviewing our offering to find new ways to help them as much as we possibly can.

“The private rental sector is crucial to the functioning of our economy, therefore it’s so important that we, as an industry, continue to look for opportunities to support landlords.”

She adds: “We hope this change will come as welcome news.”

Fixed-rate product range

Landbay has also cut rates across its fixed-rate product range with the biggest reductions for its two-year fixed rates, which have been lowered by up to 0.15%.

This includes its popular small HMO/MUFB range, available at up to 75% loan-to-value (LTV).

The five-year fixed range has been reduced by 0.10%, including five-year options for both standard properties and their small HMO/MUFB range. These too are available at up to 75% LTV and now start at 4.59%.

Landbay’s sales and distribution director, Rob Stanton, said: “Following the positive news on inflation, we are really pleased to respond straight away with rate reductions across our fixed rate products.

“In recent weeks, the market has seen a lot of movement on rates in reaction to swap rates and ahead of the upcoming Budget.

“It’s great to be in a position where we can reduce rates and ensure our range is as competitive as possible.”

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