In a very positive move, the recent fall in swap rates has prompted many lenders to react quickly to pass on rate reductions to consumers. We’ve seen a variety of new buy-to-let products launched in July, a number of which are limited editions so it would certainly pay to act quickly if you’re looking to secure them for your clients.
Let’s take a look at some of the changes announced in the last few weeks.
Foundation Home Loans has launched a new limited edition buy-to-let five-year fixed rate. Available to both individual landlords and limited companies, the product is priced at 6.69 per cent with a flat fee of £2,995 up to 75 per cent loan to value (LTV). This comes on the back of a refresh of the lender’s buy-to-let and owner-occupied core ranges in the middle of the month.
Paragon Bank has announced a new selection of limited edition five-year fixed products in its buy-to-let portfolio range. Rates started from 5.75 per cent and include fixed fee options. Pricing has since been lowered to start from 5.6 per cent and all products currently benefit from free valuations.
Aldermore also launched a limited edition range of buy-to-let mortgages for individual and company landlords with either single or multiple investment properties. For a single residential investment, rates start at 6.39 per cent for a five-year fixed product up to 75 per cent LTV with a three per cent fee. The multi-property product with the same fee and LTV is priced at 6.29 per cent.
For a lower 1.5 per cent fee, the multi-property five-year fixed product is priced at 6.59 per cent and the single investment property at 6.69 per cent, both up to 75 per cent LTV.
Landbay has made reductions of between 30 and 70 basis points across its fixed rate product range. This includes Like-for-like standard two-year fixed remortgages at 75 per cent LTV from 4.39 per cent, down by 40 basis points (bps). Small houses in multiple occupation and multi-unit freehold blocks five-year fixes at 70 per cent LTV start from 5.79 per cent, down by 60 bps.
The lender has also introduced a new five-year fixed rate range for standard properties featuring discounted rates and variable LTVs and fees for extra affordability. These start at 5.15 per cent for a product up to 55 per cent LTV with a seven per cent fee and a maximum loan size of £1.5m.
Other positive moves
Leeds Building Society launched a buy-to-let range for landlords using limited companies.
The new range offers two and five-year fixed rate products at either 75 per cent or 80 per cent LTV. The five-year fixed options start at 6.65 per cent for a 75 per cent LTV product with a £999 fee and a maximum loan amount of £500,000. The two-year fixed range starts at 7.2 per cent with a £999 product fee. A £0 product fee is available at 6.78 per cent for a five-year fixed up to 75 per cent LTV and at 7.50 per cent for a two-year fixed up to 75 per cent LTV. The range has no maximum age at the end of term.
Newcastle Intermediaries launched two and five-year buy-to-let products for its existing customers. The range features fee-assisted products designed to support those customers who are looking for assistance with costs. Available up to 75 per cent LTV, rates start from 6.38 per cent for a five-year fixed. Customers will benefit from 10 per cent overpayment facilities in addition to the £499 regular monthly overpayments already permitted.
In a criteria change, Vida Homeloans has reduced the number of its credit tiers down to just three: Vida 36, Vida 24 and Vida 6. This is designed to simplify its proposition and help those customers with historical adverse or minor credit blips to access the best products and rates available to them.
Hinckley and Rugby for Intermediaries has also made a number of criteria changes across its entire range, including buy-to-let. Loan sizes have increased from £500,000 to £750,000 at 75 per cent LTV and a loan size of £1,500,000 is now available at 60 per cent LTV enabling landlords to invest in higher-value properties.
The building society has removed the minimum income requirement and limited company applicants no longer need to have 24 months’ experience. The maximum age for top-slicing has also been extended to 85 to enable older borrowers to invest in buy to let as part of their retirement strategy.
With the summer holidays now upon us we’ll have to wait and see whether August is a quieter month for the market or whether the levels of positive activity seen in July will be sustained into the autumn.
Fingers crossed for more of the same.
