And the temperature is not the only thing we have seen decreasing this month. Across the market, we have seen many rate reductions announced alongside new product ranges from a vast array of lenders all looking to support borrowers with affordability and present a competitive proposition for the final push of 2023.
Let’s take a whistle-stop tour of some of the changes announced in the last few weeks.
Rate declines
Santander has introduced a buy-to-let three-year fixed range up to 75 per cent loan to value (LTV) with products available either with or without a fee. At 75 per cent LTV, landlords can select a 5.5 per cent rate with a £1,749 product fee or alternatively opt for a 5.99 per cent rate and a £0 product fee. The lender has also reduced all of its fixed buy to let rates by between 0.10 per cent and 0.32 per cent.
Two-year fixed rates now start from 5.57 per cent at 60 per cent LTV and five-year fixed rates from 5.04 per cent at the same LTV.
Kent Reliance has launched a buy-to-let range which includes a seven per cent fee limited edition product that has been reduced by 0.5 per cent to 5.19 per cent – a lower price aimed at supporting even more landlords. This five-year fixed product is available up to 75 per cent LTV with a £50,000 minimum loan size. The range also includes a new two-year fixed 75 per cent loan-to-value (LTV) products from 4.89 per cent, as well as two-year trackers from 5.49 per cent.
Market Financial Solutions (MFS) has launched a new range of lower rate buy-to-let mortgages, including special edition trackers with a choice of four per cent and six per cent fee options and the ability to roll up and defer interest. These products are designed to provide customers with more flexibility and the ability to achieve a higher loan size. The six per cent product fee option starts at 0.25 per cent + bank base rate (BBR) using deferred interest for a total loan term of five years up to a maximum LTV of 75 per cent.
Vida Homeloans has made significant reductions to its buy-to-let ranges, reducing rates by up to 85bps on its fixed products across all tiers. The range includes products from 75 per cent through to 85 per cent LTV and sees the introduction of new 75 per cent LTV limited editions on the lender’s five-year fixed range. On the Vida 36 tier, a five-year standard product with a six per cent fee is priced at 5.14 per cent, whilst the five-year HMO/MUB product, also with a six per cent fee, is priced at 5.34 per cent.
More movement in the market
Lendinvest is another lender to launch a buy-to-let range with rates starting from 4.79 per cent for a standard two-year fixed up to 75 per cent LTV with a seven per cent product fee. The range includes a new suite of two-year products and the return of seven-year fixed products including 6.64 per cent per cent for a standard property with a two per cent product fee at 75 per cent LTV. The lender has also reintroduced large HMO fixed rate products.
Earlier this month, Aldermore reduced rates across its buy-to-let range including HMOs and multi-unit freehold products. It also introduced a limited edition five-year fixed with a five per cent fee priced at 5.29 per cent up to 75 per cent LTV for individuals and companies with single residential investment properties alongside a 5.19 per cent multi property product for portfolio landlords up to 75 per cent LTV.
In another move to assist with affordability, Bank of Ireland has reduced rates across both its standard buy to let and bespoke buy to let ranges. A standard 5 year fixed at 75 per cent LTV now starts at 5.29 per cent with a £2,495 product fee, whilst the 2 year fixed equivalent starts at 5.49 per cent with the same product fee.
Molo has announced a new proposition to support non-residents looking to enter the UK housing market. The introduction of its Non-Resident Buy to Let Mortgages range offers borrowers worldwide the opportunity to secure a buy to let property in England and Wales without requiring a UK bank account. The lender is offering 5-year tracker rates available from 6.99 per cent and 2- and 5-year fixed rate deals available starting from 7.99 per cent, all available up to 75 per cent LTV. The range offers many specialist products and is available to first-time borrowers and landlords in over 60 countries.
In a series of criteria changes, Lendco has announced that it will now service houses in multiple occupation (HMOs) with up to 20 rooms. Rates start at 5.84 per cent in its large HMO range for a two-year fixed rate at 75 per cent LTV with a 5 per cent arrangement fee. It has also introduced up to 75 per cent LTV for foreign nationals and offers bridge-to-let products from 0.75 per cent per month. In addition, Lendco has introduced a number of range reductions across its buy-to-let range.
United Trust Bank (UTB) has restructured its buy-to-let product categories to make them cheaper, simpler and easier for brokers to understand. Properties once considered as non-standard now qualify for UTB’s ‘standard’ range, meaning that they price up to 2.35 per cent per annum. lower than before. With a five per cent fee, the standard range rates start at 6.34 per cent up to 70 per cent LTV for a two-year fixed and 6.64 per cent for a five year. Four per cent, three per cent and two per cent fee options are also available up to a maximum 75 per cent LTV.
So, lots of positive changes, in particular a definite increase in the number of variable fee option products – ideal for those borrowers who are happy to consider higher fees in order to improve their affordability. Now let’s wait and see what November brings.
