This has inevitably resulted in a relatively flat market across the board in the last few weeks that will hopefully reignite for the second half of the year when a little more stability is introduced. 

However, the private rental sector remains fundamental to this country and, despite a slight sense of trepidation felt by some landlords regarding a possible change of government and the undecided outcome of Section 21, for example, we are still seeing many landlords pursuing portfolio diversification – houses in multiple occupation (HMOs), semi-commercials and holiday lets are all still proving popular options.

 

Minimal BTL launches – focus on policy tweaks 

In terms of product and criteria changes, it’s been another month where we’ve seen many tweaks to pricing, but relatively few new products being launched. It seems that consumers aren’t the only ones closely watching events unfold in Westminster.

As usual, let’s take a quick tour of some of the updates announced in the specialist market in June. 

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Precise has introduced more fee options and made price reductions across its buy-to-let (BTL) range to help landlords looking to boost their borrowing capacity. Rates with the lender now start from 4.49% and borrowers can benefit from the reintroduction of Tier 1 products at 75% loan to value (LTV) and the expansion of Tier 2 and 3 products up to 80% LTV. The lender has announced 7% and 5% fee options for five-year fixes in Tier 1, plus a 5% fee option for two-year fixes in Tier 1.

Kensington has released three special BTL rates for 75% LTV and a brand new two-year fixed rate with a £4,000 fee. Individual and limited company landlords can access a five-year fixed with a 3% fee at 75% LTV priced at 5.09% or two-year fixes priced at 4.19% with a 5% fee or 5.04% with a 3% fee. The £4,000 fixed fee option is available on two-year fixes up to 75% LTV and is priced at 5.79%. 

Landbay has lowered prices across higher-fee products for its standard two- and five-year ranges by 5bps and across its small HMO and multi-unit freehold block (MUFB) two-and five-year ranges by 10bps. A standard five-year fixed up to 75% LTV with a 7% fee is now priced at 4.69%, while a standard five-year fixed for a small HMO/MUFB up to 75% LTV with a 6% fee is now 5.09%. 80% LTV products with 0% fees are also now available on standard lets and small HMOs. 

Another lender reducing rates is Fleet Mortgages. Its standard 75% LTV five-year fixed rate product with a 3% fee has been reduced by 20bps and the limited company equivalent by 35bps. Fleet has also announced two additions to its 75% LTV standard and limited company five-year fixes. The products come with a fixed fee of £3,999 and a maximum loan value of £500,000. 

Molo has made further reductions to its BTL rates for UK residents. The lender’s standard two-year fixed rates now start from 4.55% and its five-year fixed from 5.06% for both individuals and limited companies. Specialist rates for HMOs, MUFBs, new build and investor-led properties are available from 4.65% for a two-year fix and from 5.16% for a five-year fix. 

LendInvest has cut rates across its BTL products by up to 15bps to support its expanding range. Two-year fixed rate products have been reduced by up to 15bps and now start from 3.79% up to 75% LTV with a 7% product fee for a standard property. All other fixed rate products have been reduced by up to 10bps. 

Foundation Home Loans has launched new two- and five-year fixed limited-edition products in its F1 BTL range. Available up to 75% LTV, the two-year fixed product is priced at 5.89% and features a 1.25% fee and maximum loan amount of £1.5m. The five-year fixed product is priced at 5.59% and is available up to 75% LTV with a 2.25% fee and a maximum loan of £1.5m. 

Suffolk Building Society has announced reduced prices on a number of its BTL products. Highlights include its expat holiday let two-year fixed product up to 80% LTV, which is now priced at 6.09% (down 30bps). A two-year fixed BTL up to 80% LTV with a £999 completion fee is down 20bps to 5.69% and a two-year fixed BTL light refurbishment product up to 80% LTV with a £999 completion fee is now available at 5.79%, also reduced by 20bps.

Buckinghamshire Building Society has this month launched an adverse credit BTL product in response to broker demand to provide more options for landlords who have experienced minor credit issues. The new BTL non-standard credit mortgage features a three-year discount of 2.40% on the standard variable BTL rate. It is available up to 75% LTV with zero application fees and a product fee of £1,195. 

 

Criteria changes in June 

In a series of criteria enhancements, CHL Mortgages has increased its maximum aggregate exposure to £5m with no limit on the number of properties/mortgages.

Maximum loans have also been increased to £2m up to 70% LTV. The maximum number of bedrooms for a standard property has been increased to six and the maximum LTV for new-build flats and ex-local authority flats is now 75%. Properties on the Isle of Wight are also now accepted. The lender has also launched a limited-edition range of two- and five-year fixed rates starting from 3.95% for a two-year product and from 4.99% for a five-year option. 

All are available up to 75% LTV. 

Zephyr Homeloans has announced that 80% LTV will now be available to HMOs and MUFBs on five-year fixed rates. This was previously only available on standard properties. Across both standard and HMO/MUFB five-year fixed rate products at 80% LTV, there will now be 0% and 3% product fee options. Product fees can now be added to the loan on all products up to 83% LTV, enabling the 7% fee options to be added to the loan at 75% LTV. 

That’s all for now. See you on the other side of the election.