However, look forward we must. Thankfully the buy-to-let (BTL) sector continues to thrive, and this was reflected in five leading specialist lenders making positive product changes.
The Mortgage Works (TMW) launched a five-year fixed rate at 50 per cent loan-to-value (LTV).
The product is available for purchase and remortgage purposes and is priced at 1.69 per cent with a £1,995 fee or 1.74 per cent with a £1,995 fee, depending on choice of valuation, cashback or free legals.
Paragon lowered fixed rates across ten buy-to-let mortgages by up to 0.45 per cent.
The cuts apply to two and five-year fixes for landlords who are purchasing or remortgaging in their own name or through a limited company.
All the products come with a free valuation and with zero fees and/or up to £750 cashback.
Foundation, Landbay and Vida
Foundation Home Loans introduced a pair of two-year, fixed-rate limited edition buy-to-let products for limited company landlords.
The first is at 2.99 per cent up to 75 per cent LTV with a fee of one per cent for standard properties. Additionally, a house in multiple occupancy (HMO) version up to 75 per cent LTV with a one per cent fee is available at 3.34 per cent.
The products for limited company borrowers are designed specifically for clients who just miss out on mainstream credit or criteria.
Landbay launched a five-year fixed rate offering at 50 per cent LTV at 2.99 per cent and is available on standard properties with loan sizes up to £1m.
In addition, Vida reduced rates by up to 40bps on a range of buy-to-let products. The cuts apply to the lender’s core BTL range, HMOs/ multi-unit blocks (MUBs) and expat offerings. Reductions also apply to the Vida Flex product.
Mutual moves
There has also been a raft of activity from a product and criteria perspective across the building society sector.
Skipton International increased its maximum buy-to-let LTV to 75 per cent from 70 per cent on all loans up to £1m. Existing applicants who have already applied for a 70 per cent LTV loan will be able to increase to 75 per cent LTV providing they meet the other relevant criteria.
The lender has also extended its buy-to-let offering to non-UK residents who intend to live in the property at a future date.
Leeds Building Society reduced its interest cover ratio (ICR) from 145 per cent to 125 per cent on buy-to-let mortgages where the applicant is a basic rate taxpayer.
The ICR for higher rate taxpayers remains at 145 per cent. For additional rate taxpayers, ICR is 150 per cent, while the ICR for all holiday let applicants will remain at 145 per cent.
Vernon Building Society reintroduced top-slicing to its buy-to-let proposition and increased its maximum LTV to 75 per cent from 70 per cent.
It has also launched two new holiday let products on three-year discounted rates, starting from 1.71 per cent with a fee of £1,499.
Mansfield for Intermediaries has also introduced a five-year holiday let mortgage product. The offering is a 65 per cent LTV five-year fix at 4.19 per cent.
It has an £199 application fee, £1,300 completion fee and three per cent ERCs. The product is available for new or existing landlords.
These all represent progressive change and after the year we’ve all had to endure I hope this positive momentum remains evident in the BTL market and beyond in Q2.
