Fingers crossed this won’t be the case, and there wasn’t anything in the recent mini Budget to suggest this, but it’s not beyond the realms of possibility if recent government approaches are anything to go by.
From a lending perspective, it largely remains business as usual when it comes to activity levels. However, inevitably there are plenty of rate and criteria changes as swap rates fluctuate and the Bank of England looks to bring inflation under control via a string of base rate hikes.
Positive changes
From a product perspective, a few positives emerged from the specialist lending market in September. Landbay lowered rates on its two-year fixed rate buy-to-let mortgages. This applies to standard properties, houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs).
The rate changes included a standard property two-year 75 per cent loan to value (LTV) fixed from 4.99 per cent to 4.89 per cent and a standard property two-year 80 per cent LTV fixed from 5.29 per cent to 5.09 per cent. In addition, there was a 0.30 percentage point reduction in a small HMO two-year 75 per cent LTV fixed to 4.89 per cent from 5.19 per cent and a small MUFB two-year 75 per cent LTV fixed down to 4.89 per cent from 5.19 per cent.
Earlier in the month, Landbay also reduced rates on its term tracker range by up to 0.86 percentage points across HMOs and MUFBs on both new builds as well as older properties.
Green focus
Fleet Mortgages launched new buy-to-let green mortgages and reintroduced 65 per cent LTV products across its three core ranges – standard, limited company and LLP, HMO and MUFB.
The new green products are available to those landlord borrowers seeking to purchase or remortgage properties which have an EPC level of A through to C, and are five-year fixes available at 75 per cent LTV. They come with a 10-basis points reduction off Fleet’s core five-year fixes with both standard and limited company/LLP offered at 4.85 per cent, and HMO/MUFB offered at 4.99 per cent.
The specialist lender has also reintroduced product options at 65 per cent LTV, with standard and limited company/LLP products available at 5.25 per cent, and HMO/MUFT at 5.39 per cent.
Staying on the green theme, Foundation Home Loans extended its ABC+ Green mortgage range with the addition of a set of Special Edition two-year buy-to-let discounted products up to 75 per cent LTV.
These products are available for both limited companies and individuals looking to either remortgage or purchase. They also have an enhanced maximum loan size of £1.5 million at 75 per cent LTV to benefit those landlords looking to borrow more at 75 per cent LTV for their EPC A-C rated properties.
The products are available as part of Foundation’s F1 product range and include a two-year discount at 3.49 per cent (3.25 per cent discount). For HMO lending – up to six occupants – there is a two-year discount at 3.74 per cent (3 per cent discount). Meanwhile, for short-term lets there is a two-year discount at 3.84 per cent (2.9 per cent discount). All products are ERC-free and come with a 1.5 per cent product fee.
Despite a lingering lack of clarity and direction when it comes to the exact requirements needed, potential costs, timeframes and exacting implications if properties do not match up to relevant EPC ratings, it’s encouraging to see further activity in the green mortgage arena as landlords who are considering their energy efficiency plans need more choice.
Hopefully, a greater number of green mortgage options will emerge in Q4 and beyond.
