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Stable and positive moves for the BTL market in July – Dynamo

by: Cat Armstrong, mortgage club director at Dynamo for Intermediaries
  • 01/08/2022
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Stable and positive moves for the BTL market in July – Dynamo
In contrast to the rapid fire repricing schedule of May and June, and despite the record breaking heatwave experienced across the UK, July has cooled off a little from a product perspective which has resulted in greater stability across the buy-to-let market.

Although these conditions remain far from benign and we’ve seen plenty of positive moves being made, especially from specialist lenders.  

Foundation Home Loans launched a new buy-to-let limited edition product. Available as part of its F1 product range, the product is available up to 75 per cent loan to value (LTV) with a rate of 4.99 per cent fixed for five years. It also comes with one free valuation, no application fee and a product fee of two per cent. The maximum loan is £1m, and the product is available for both limited company or individual borrowers looking to either remortgage or purchase. 

Landbay introduced its first 10-year fixed rate mortgage range. The new range is for standard properties and small homes in multiple occupancy (HMOs) up to six bedrooms with rates from 4.04 per cent. These products are also available with green options which have reduced rates for properties with an EPC rating of A, B or C. 

CHL Mortgages released a buy-to-let refurbishment product range. This consists of three products: light refurbishment, cosmetic improvement and EPC improvement. The first two products are designed to increase the future asset/rental value of the property, with the latter a green mortgage option which is specifically designed to improve the energy efficiency of the property.  

The range is available to individuals and limited companies and is applicable on standard buy-to-let properties, small HMOs and small multi-unit freehold blocks (MUFBs) with five-year fixed rates starting from 4.41 per cent. 

West One Loans launched a new buy-to-let discount two-year tracker which borrowers can exit at any time without paying a penalty. The product is priced from 3.29 per cent for the first two years, up to 80 per cent loan to value before moving to West One’s reversion rate, which is currently Bank Base Rate plus 4.99 per cent. The lender has also introduced a new range of W1 lifetime tracker products for both standard and specialist applications, with rates starting from 3.64 per cent (BBR +2.39 per cent) with options for a two or five-year early repayment charge (ERC) period. 

Castle Trust Bank revamped its TermTen buy-to-let product to provide certainty with rates. The updated product features a booking fee of 0.07 per cent to ‘lock in’ the current rate. The fee is payable when a credit-backed decision in principle (DIP) has been agreed and will secure the rate for 120 days once the terms have been issued. If the loan completes within this timeframe, the booking fee will be deducted from the arrangement fee at completion. 


Building society updates 

Moving into the building society sector, Coventry for Intermediaries reduced selected buy-to-let and portfolio landlord rates by up to 0.25 percentage points and expanded its buy-to-let and portfolio landlord ranges. 

Last but not least, The Nottingham expanded its mortgage offering with the introduction of holiday let lending. Its criteria includes lending on up to two holiday lets (in England or Wales), with no minimum personal income requirement.  

The mutual will also take into consideration up to 32 weeks’ rental yield and allow the owner to utilise the holiday let for personal use for up to 60 days each year. The Nottingham’s new products, all available up to 75 per cent LTV, include a two-year discount with no ERCs and £999 fee (£0 upfront) priced at 3.25 per cent. 

A product push which will help an array of landlords to benefit from even more options over the latter part of the summer. 

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