Now, let me qualify that by adding that I don’t think that’s necessarily a bad thing. With the last 12 months being such a turbulent time for the industry, 2024 was always going to be about recovery.
And now it finally feels as if things are calming down and we’re settling into a slightly more stable period.
That’s not to say things are at a standstill. This month has seen tweaks and changes from many lenders as they continue to deal with the challenge of the cost of funding. The market remains active, driving activity and keeping both lenders and brokers on their toes.
Let’s take a look at some of the positive changes we’ve seen in the last few weeks.
Products coming to market
Fleet Mortgages introduced 65% loan to value (LTV) five-year options across its three core ranges: standard, limited company and houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs).
In its standard and limited company ranges, the product is priced at 5.29% with a 3% fee, whilst the HMO/MUFB option is priced at 5.69% with the same fee.
CHL Mortgages has expanded its CHL 1 product range this month, including a range of five-year fixed rate products as well as 55% LTV options.
CHL 1 offers standard buy-to-let (BTL) and HMO/MUFB products for both individuals and limited companies. Standard BTL rates start at 3.19% for a two-year fixed and from 4.67% for the five-year fixed, both up to 55% LTV with a 7% fee. The equivalent HMO/MUFB products are priced at 3.21% and 4.73% respectively, again up to 55% LTV and featuring the 7% fee.
Foundation Home Loans launched a limited edition two-year fix to offer landlords greater choice when looking for shorter-term options. The product is in its F1 range for clients with an almost clean credit history and is fixed at 5.79% for two years. It is available up to 75% LTV and features a 1% product fee.
It is available for both limited companies and individuals.
BTL pricing adjustments
Suffolk Building Society has made some rate reductions of up to 20 basis points (bps) on a number of its BTL, expat BTL, expat holiday let and BTL light refurbishment products.
These include an 80% LTV BTL light refurbishment two-year fixed product, now priced at 5.99% with a £999 completion fee, and an 80% LTV expat BTL two-year fixed, now at 6.09% with a £1,499 completion fee. Both these products are available for purchase or remortgage.
Precise made some changes to its BTL proposition. A reduction in its 80% LTV products means that two- and five-year fixed rates at that LTV now start from 5.79%. It also relaunched Tier 2 and Tier 3 products to support those landlords with adverse credit profiles.
A two-year fix in Tier 2 for single-dwelling properties starts from 5.29% with a 3.5% product fee up to 75% LTV, whilst in Tier 3, the equivalent rate is priced at 5.59%.
Zephyr Homeloans has reduced all its five-year fixed rates and lifetime tracker products by 15bps. A 70% LTV five-year fixed product for a standard property with an EPC rating of A to C is now priced at 5.25% with a 5% product fee, or 5.65% with a 3% fee.
Lifetime trackers now start from 6.79% (bank base rate plus 1.54%) up to 65% LTV for a standard property with an EPC rating of A to C. Product fees can now be added to all products, including those in its 75% LTV range.
Kent Reliance has enhanced its BTL range by reducing its 80% LTV fixed rates by 50bps. A two-year fixed product at 80% LTV is now priced at 5.84% with a 3.5% fee or 6.34% with a 2.5% fee. A five-year fixed at 80% LTV is priced from 5.99%.
Kent Reliance’s full range is suitable for any property type, including HMOs with up to 20 lettable rooms.
West One has made rate reductions on a selection of its core first charge BTL fixed rate ranges. Rates in its large HMO complex range have been reduced by 20bps and now start from 4.99% for a two-year fixed up to 55% LTV with a 4.99% arrangement fee. This range covers HMOs from seven to 10 beds and MUFBs from seven to 10 units. The lender’s expat and W2 ranges have both been reduced by 15bps and its small HMO/MUB range by 10bps.
Landbay has reduced rates by up to 0.25% across its five-year fixed range for small HMOs and MUFBs, including trading companies and first-time landlords. This range also features a variable fee structure to provide greater flexibility where it is needed. The 6% fee option for small HMO/MUFB up to 75% LTV is now priced at 4.99%, whilst the lower 3% fee option is 5.79%.
A criteria update
Last but by no means least, in an amendment to criteria, Coventry for Intermediaries has reduced the reference rates for BTL applications to make it easier for new and existing landlords to finance their rental properties by borrowing more.
Five-year fixed reference rates are now 4.75% (previously 5.5%) or pay rate (whichever is higher). Two-year fixes are now the higher of 5% (previously 5.5%) or pay rate. For two-year fixes with additional borrowing, the reference rate is now 6.5% or pay rate (whichever is higher).
If you are interested in registration for the Buy to Let Market Forum 2024, please follow this link.
