As I look forward to a break over the festive period, however, I know that I’m also going to be using the time to look back at the many positives from this year. Challenging times really do give us the chance to prove our worth and I’ve been hugely impressed by the resilience shown by brokers who have seized the opportunity to adapt and grow.
I’m also incredibly proud of the team that I work with for this very reason. Whilst it’s been a stressful time for consumers struggling to understand an ever-changing market, I believe that brokers, clubs and networks have done a fantastic job supporting customers and working closely with lenders to mitigate problems.
So, let’s keep these positives in mind as we take one last look for the year at some of the recent product and rate changes.
Looking on the bright side
Family Building Society has reduced all of its five-year fixed rate products this month. Rates for UK landlords now start from 5.59 per cent up to 60 per cent loan to value (LTV).
Limited company rates start from 5.74 per cent up to 60 per cent LTV, plus product fees have also been reduced to one per cent for limited company special purchase vehicle (SPV) products. Family BS has also introduced two-year fixes featuring rates from 6.09 per cent up to 60 per cent LTV with a £999 fee.
Landbay has made further rate cuts to its standard five-year fixed product range by up to six basis points (bps) with rates now starting from 4.65 per cent. A standard five-year fixed up to 75 per cent LTV is priced at 4.89 per cent (down from 4.95 per cent) with a six per cent fee.
A standard five-year fixed up to 70 per cent LTV with a 7 per cent fee is now 4.69 per cent (down from 4.75 per cent). The range features a variable fee structure to assist clients with affordability.
Foundation Home Loans (FHL) has launched special buy-to-let products. These five-year fixed portfolio landlord specials are in FHL’s F1 tier (for landlords with an almost clean credit history) and are available for purchase and remortgage. The five-year fixed up to 65 per cent LTV is priced at 5.24 per cent and the 75 per cent LTV product is priced at 5.34 per cent, both with a six per cent product fee.
FHL has also made a range of buy-to-let rate reductions to further encourage landlords to evaluate their options. For example, its F1 and F2 core range two-year fixed products have been reduced by up to 0.2 per cent with rates starting from 6.54 per cent with a 1.5 per cent fee.
Vida Homeloans has announced rate reductions of up to 0.3 per cent across their buy-to-let products. The lowest Vida 36 initial rate is now 5.39 per cent for a five-year fixed up to 75 per cent LTV with a 4 per cent fee. In addition to reductions on its core range, Vida is also offering two-year fixed standard limited edition products up to 65 per cent LTV priced at 6.35 per cent and up to 75 per cent LTV at 6.5 per cent, both with a two per cent fee.
Notable reductions and changes
The Mortgage Works (TMW) has reduced rates by up to 0.4 per cent for both new and existing customers as part of a drive to support all types of landlords with a variety of needs.
Rates now start from 4.19 per cent for a two-year fixed at 65 per cent LTV with a three per cent product fee – a reduction of 0.15 per cent. Other changes include rates for new customers reduced by up to 0.4 per cent on large portfolio and let-to-buy ranges and by up to 0.20 per cent on its Green Further Advance products.
Skipton has made reductions to its range for existing customers. Both two- and five-year products have been reduced, including at 75 per cent LTV where a two-year fixed is now available at 5.99 per cent (down from 6.16 per cent), while the five-year equivalent is priced at 5.24 per cent (down from 5.41 per cent).
Accord Mortgages has cut selected buy-to-let rates by up to 30 bps with the biggest reductions being in its three-year range. Five-year products have been reduced by up to 20 bps and selected two-year rates by 15 bps. Reductions include a three-year fixed available for landlords remortgaging at 5.14 per cent (down from 5.44 per cent) up to 65 per cent LTV with a £995 fee and a free standard valuation.
Leeds Building Society has expanded its limited company landlord range after entering this market in July. The range includes new fixed rate periods and loan-to-value tiers, plus products with different fee structures and loan terms. The new additions include a five-year fixed product up to 75 per cent LTV priced at 5.44 per cent with a £5,999 fee. A zero fee equivalent is available at 5.94 per cent.
Finally, CHL Mortgages has expanded its offering to cater for a wider variety of customer situations and organised its products into two distinct ranges: CHL 1 and CHL 2.
CHL 1 is designed for customers with a clean credit history and consists of standard buy to let and small houses in multiple occupation (HMO) or multi-unit freehold block (MUFB) product types. It includes CHL’s headline rate of 3.65 per cent for a two-year fixed up to 65 per cent LTV. five-year fixed rates in CHL 1 start from 5.10 per cent up to 65 per cent LTV. The CHL 2 range features flexible criteria to cater for more complex property types and circumstances.
Product options include standard buy to let, small and large HMO/MUFB, short-term lets and the refurbishment range.
All that’s left is to wish you a happy and relaxing festive period. See you all back here in January.
