It’s encouraging to see lenders continuing to develop their ranges to support a variety of different customer needs. Let’s get straight down to business.
Some good news
Foundation Home Loans has added special products to its range as well as F1 and F2 products within its buy-to-let range. These two and five-year fixed rates are available up to 75 per cent loan to value (LTV).
Rates start at 6.49 per cent in the F1 tier for a two-year fixed product up to 65 per cent LTV with a 1.25 per cent fee and free valuation, whilst in F2 rates start from 6.54 per cent for a two-year fixed product up to 65 per cent LTV with a one per cent fee. Foundation Home Loans has also launched specific houses in multiple occupation (HMO) specials in its F2 tier up to 75 per cent LTV with rates starting from 6.64 per cent for the two-year offering and 6.59 per cent for the five-year fixed.
Saffron for Intermediaries has re-introduced five-year fixed rates across its buy-to-let range. A standard five-year buy-to-let product is available at 6.37 per cent up to a maximum LTV of 75 per cent with a £1,999 fee, whilst a limited company equivalent is available at 6.57 per cent up to a maximum 75 per cent LTV with a 1.5 per cent fee.
Family Building Society has also relaunched a number of five-year fixed rates for UK landlords. These start at 6.14 per cent up to 60 per cent LTV with a £999 product fee, whilst its limited company special purchase vehicle (SPV) five-year fixed products start from 6.24 per cent up to 60 per cent LTV with a two per cent product fee.
The mutual also introduced a five-year fixed rate for expats on an interest-only basis. This is available at 6.49 per cent up to 70 per cent LTV with a one per cent product fee (subject to a minimum of £1,000).
Adjustments for access
Mansfield Building Society launched two buy-to-let products up to 75 per cent LTV including a product for SPV limited companies designed to help landlords with affordability in the current interest rate environment. This two-year discounted rate is available for loans between £100,000 and £500,000. With a rate currently at 4.79 per cent, this comes with a £199 application fee and 2.5 per cent completion fee. The lender is offering a Standard and Consumer Buy to Let product for private landlords with the same LTV and fee structure at an initial rate of 4.54 per cent variable.
Hampshire Trust Bank has enhanced its special edition five-year fixed buy-to-let deal. This product starting at 6.99 per cent was initially launched in April for loans up to £1m, but this has now been increased to £25m to open it up to more experienced landlords with larger portfolios.
Landbay made a number of changes in June. First was a rate reduction on its two-year tracker buy-to-let mortgages by up to 90 basis points and the introduction of new products to the range. two-year tracker products are available for standard properties, HMOs, multi-unit freehold blocks (MUFB) and trading companies. These start at 0.09 per cent + bank base rate (BBR) with a four per cent fee, a maximum LTV of 75 per cent and no early repayment charges. The largest reductions are to standard tracker products now available from 1.09 per cent + BBR with a two per cent fee and 0.59 per cent + BBR with a three per cent fee.
The lender also launched a new range of two-year fixed rate like-for-like buy-to-let remortgage products featuring a lower interest cover ratio (ICR) stress test. Landlords remortgaging with no change to their borrowing requirements will be stress tested at pay rate plus one per cent (instead of the standard pay rate plus two per cent) to help with affordability. Rates start from 5.09 per cent at 75 per cent LTV gross with a product fee of five per cent.
Finally, Fleet Mortgages has launched a limited edition product feature that offers a £1,000 cashback payment to landlords if they improve the energy performance certificate (EPC) level of the property to a C or above during the initial fixed rate period. This is available on Fleet’s five and seven-year fixed rate products, excluding green options, which complete from 1July onwards.
So, amongst the many product withdrawals and rate increases last month, it’s great to see this type of activity taking place across the market. As we approach the summer holidays, however, I think we’ll all be hoping for a slightly more settled July.
