With many feeling that the Chancellor may have missed some opportunities, it is easy to focus on the continuing challenges being faced by homeowners and landlords alike. However, we should take a moment to focus instead on the positives that have come our way this month.
With slightly improved stability, November has prompted a host of lenders to re-evaluate pricing and announcements of rate reductions have been coming through thick and fast – many more than can be covered here.
Let’s take a look at a selection of them and some other notable changes.
A flurry of reductions
Following a recent rate reduction earlier this month across all of its five-year and two-year fixed rate products, Landbay has announced a further cut of 0.2 per cent on its two-year fixed rate standard and like-for-like ranges. Rates have also been reduced by 0.15 per cent on its two-year and five-year fixed products designed for small houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs) and five-year fixed terms for trading companies.
With an eye on affordability, all products also include variable fee structures.
Fleet Mortgages has also made a number of rate reductions this month. Standard and limited company five-year fixed rate products along with green seven-year fixed products have been reduced by 20bps. The standard and limited company seven-year green option is available at 5.34 per cent up to 75 per cent loan to value (LTV) with a three per cent fee.
Standard and limited company five-year fixed rate products now start at 5.14 per cent up to 70 per cent LTV with a five per cent fee.
Vida Homeloans has reduced buy-to-let rates. In its limited edition range, there has been a 0.15 per cent cut on the five-year fixed up to 75 per cent LTV in the Vida 36 tier. This product is now priced at 4.99 per cent with a six per cent fee.
For HMO/MUBs, there has been a 0.20 per cent cut on the five-year fixed up to 75 per cent LTV in Vida 36. This is available at 5.14 per cent with a six per cent fee. On the standard ranges, there have also been reductions including up to 0.40 per cent for HMO/MUBs. Vida is offering fee options of two per cent, four per cent and six per cent for added flexibility across its range.
West One has made further changes to its limited edition first charge buy-to-let fixed rate range. Portfolio two-year fixed products have seen reductions of up to 11bps with rates starting from 4.19 per cent whilst portfolio five-year fixes have been reduced by up to 16bps with rates starting from 4.44 per cent. Non-portfolio products have also been reduced.
Once again, the focus is on choice with a wide range of fee options available to suit different client circumstances. Core and complex fixed rate products have been reduced by up to 30bps with rates starting from 4.49 per cent on a two-year fixed and 5.29 per cent on a five-year fixed.
Lendinvest is offering customers lower rates having reduced standard products by up to 60bps. The range now starts from 3.99 per cent for a two-year fixed product at 75 per cent LTV with a seven per cent product fee. Lower fee options are available, for example, a two per cent fee option on a two-year fixed up to 75 per cent LTV priced at 6.69 per cent.
Precise Mortgages has reduced rates in its limited edition offering.
Two-year fixed rates now start from 4.39 per cent and five-year fixed rates from 4.84 per cent, both up to 70 per cent LTV and with options for personal ownership, limited company, HMO and limited company HMO landlords.
New deals on the market
Turning our attention to some other positive changes, Foundation Home Loans has introduced a ‘F2 Extra’ range to cater for more unusual properties and landlord borrower needs. It covers extra-large HMO properties (over nine bedrooms), holiday lets, extra-large loans and extra-large portfolios.
The products are available to both portfolio and non-portfolio landlords and, as part of the lender’s F2 range, the borrower’s credit history does not need to be perfect. Rates for an extra-large HMO start from 7.04 per cent for a five-year fixed with a maximum loan available of £1.5m.
Metro Bank has enhanced its stress rates. Two-year fixed products are now stressed at 140 per cent at pay rate plus two per cent and five-year fixed and pound-for-pound remortgages at 140 per cent at pay rate plus 0.5 per cent. Metro has also made dual options available and two-year rates now start from 4.79 per cent with a four per cent fee or 5.79 per cent with a £1,999 fee.
Five-year rates start at 4.99 per cent with a four per cent fee or 5.49 per cent with a £1,999 fee.
Skipton for Intermediaries has launched fixed rates for both purchases and remortgages. In its 5-year fixed range, rates now start from 5.04 per cent (down from 5.24 per cent) up to 60 per cent LTV with a completion fee of £2,995.
Two year fixed rates are available from 5.6 per cent up to 60 per cent LTV with a completion fee of £995. Products for existing customers are available from 5.24 per cent for a five-year fixed.
Kent Reliance for Intermediaries has announced that it will accept HMOs with up to 20 bedrooms for professional landlords looking for larger investment opportunities. Interest coverage ratios are 145 per cent for limited company and 175 per cent for personal ownership. Limited edition products start from 4.59 per cent for a two-year fixed up to 70 per cent LTV with a five per cent fee or from 5.09 per cent for a five-year fixed up to 70 per cent LTV with a seven per cent fee.
Aldermore has added limited edition products to its range. Individual and company landlords can choose a five-year fixed at 5.09 per cent up to 65 per cent LTV or 5.29 per cent up to 75 per cent LTV, both with a five per cent fee. A new multi-property, five-year fixed product for both individual and company landlords is available at 4.99 per cent up to 65 per cent LTV or 5.19 per cent up to 75 per cent LTV, also with a five per cent fee.
And finally, Zephyr Homeloans has just launched new two-year fixed rates as well as reducing its five-year rates. For a standard property with an EPC rating of A–C, a two-year fixed starts at 5.35 per cent up to 65 per cent LTV and a five per cent product fee.
With a lower EPC of D or E, the equivalent product starts at 5.45 per cent. The two-year fixed range is available up to 75 per cent LTV and features fee options of three per cent and five per cent.