Together cuts buy-to-let rates

Rates now start from 7.15%, with affordability based on a 120% rental coverage, or from 8.6% for those with adverse credit in the last twelve months.

The lender will make the new rates available for loans of up to £400,000 with a 70% loan to value.

It said it will consider personal income and projected rental yields in its valuation.

Together said it wanted to offset some of the adverse changes in the market affecting borrowers, such as the 3% Stamp Duty hike on second homes introduced in April and prospective cuts to landlord tax relief due to be phased in next year.

The lender already removed the maximum age limit and increased the maximum loan size on its BTL products in June, meaning it does no longer restrict retirees or those with an income other than from employment from buy-to-let borrowing at any age if affordability can be satisfied.

Sales director Gary Bailey said: “Tax and regulatory changes made by the government haven’t been in the favour of landlords recently, yet buy-to-let is still a thriving market with savvy investors being undeterred.”

Together posted record buy-to-let lending levels in June, quashing concerns of a slowing market following the Stamp Duty changes.

Bailey said: “Our products are aimed at customers that are underserved by mainstream lenders and typically fall outside that target market. This reduction, which applies across both first and second charge loans, will mean that those who have had some adverse credit in the past year can also benefit from lower, competitive rates.”