Buy-to-let sector is ‘changeable lending environment’ – Armstrong

Buy-to-let sector is ‘changeable lending environment’ – Armstrong

In such a changeable lending environment, it’s not easy to keep track but here is some of the most recent product-related news at the time of writing.

In terms of launches, CHL Mortgages released its first seven-year fixed rate mortgage. The lender has also increased its maximum loan to value (LTV) for individual and limited company borrowers to 80 per cent, up from 75 per cent.

Foundation Home Loans announced a new BTL product range exclusively for expat landlords.

Foundation’s expat proposition is available to non-SPV (special purpose vehicle) individual landlords who are UK nationals living as expats worldwide, as well as limited company borrowers.

Products will be available for standard BTL, short-term lets, houses in multiple occupation (HMO) and green options all available up to 75 per cent LTV for both purchases and remortgage with rates starting from 3.24 per cent.

Vida introduced a range of limited edition residential and BTL products. The limited edition BTL range includes five-year fixed rates for purchase and remortgage. A standard buy-to-let product at 75 per cent LTV is available at 3.04 per cent with a £1,495 fee and a fee-free equivalent starts at 3.19 per cent. For HMOs, a 75 per cent LTV product is available at 3.19 per cent with a £1,995 fee.

Hinckley and Rugby Building Society relaunched its BTL limited company lending proposition, boosting its current BTL offerings. This includes a five-year fixed rate at 2.95 per cent up to 70 per cent LTV with a £250 application fee and £999 completion fee.

Hanley Economic Building Society launched a five-year BTL fixed rate remortgage special. This is available from 3.03 per cent up to 80 per cent LTV with a £750 product fee and a valuation fee which is subject to property value.


Fleet Mortgages, Aldermore, TML and Paragon make rate changes

When it comes to rate changes, Fleet Mortgages cut rates by 20 basis points across all lifetime tracker products available in its three core ranges – standard, limited company and limited liability partnership and HMO/multi-unit freehold block (MUFB).

Aldermore Bank reduced product switch rates across its residential and BTL ranges for existing customers. BTL rates for individual landlords now start from 2.70 per cent, with reductions of up to 0.65 per cent, while limited company rates have been reduced by up to 60 basis points and are now available from 2.95 per cent.

The Mortgage Lender announced a series of rate cuts across its BTL product range. The lender has repriced its five-year fixed rate products at 75 per cent LTV, with rates now starting at 3.33 per cent for standard properties and 3.45 per cent for HMOs. Both come with a free valuation and either free legal services for purchases or £500 cashback for remortgages.

Rates have also been reduced at 80 per cent LTV, with rates now at 4.05 per cent. The product also comes with a free valuation and either free legal services or £500 cashback. In addition to the product repricing, TML has launched a new five-year mortgage at 3.20 per cent up to 70 per cent LTV with a completion fee of £2,495.

Finally, on the criteria front, Paragon Bank extended the window in which BTL borrowers can remortgage from three months to six months. Paragon will now offer borrowers the chance to remortgage up to six months ahead of their current buy-to-let product reaching maturity.

By the time you read this, additional product modifications are likely to have been made, such is the pace of change throughout the industry. And this only serves to highlight the continued value attached to the advice process and the support and expertise this can offer for a range of borrowers, not just landlords.