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TSB ups rates on higher LTVs; Leeds BS and Foundation update BTL ranges – round-up

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  • 11/10/2019
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TSB ups rates on higher LTVs; Leeds BS and Foundation update BTL ranges – round-up
TSB has increased the rates on some of its house purchase products while both Leeds Building Society and Foundation Home Loans have made changes to their buy-to-let offerings.

 

TSB has increased rates on its five-year fixed mortgages in the 85-90 per cent loan to value (LTV) band by 0.15 per cent. 

The five-year fixed product with a £995 fee has had its rate increased from 2.34 per cent to 2.49 per cent, while the equivalent fee-free product has gone up from 2.49 per cent to 2.54 per cent. 

This aligns with Moneyfacts’ data earlier this week which found rates among higher tier LTVs had seen increases, with 95 per cent LTV rates returning to what they were six months ago.

A spokesperson for the bank said the recent movement in interest swap rates was a “critical factor” when it came to pricing its fixed rate products.  

“Lenders will launch fixed rate products at different times and they will have secured a certain amount of fixed rate funds at a certain price. Once these funds have been exhausted, lenders will need to return to the money markets to secure more funds.”  

The spokesperson continued to say due to current political and economic factors, uncertainty had fed through to the price of fixed rate funds resulting in “fluctuations in the prices of some fixed rate products over the past few months”.  

The bank has also launched a five-year fixed remortgage product in the 0-60 per cent LTV range with a rate of 1.49 per cent. 

Nick Smith, TSB’s head of mortgages, said: “The mortgage market is currently very competitive as borrowers come off existing fixed rate deals.   

“Due to an increase in demand for longer term fixed rate products, particularly at the lower LTV end of the spectrum, we have introduced this new five-year remortgage deal.” 

 

Leeds refreshes BTL mortgage range

Leeds BS is launching a buy-to-let (BTL) two-year fixed rate mortgage as part of a refresh of its range.  

The society’s product team said it tracks all rates in the market via independent sources and that its new entry was currently the lowest product rate in the 80 per cent LTV BTL market. 

The deal is available through advisers at a rate of 2.94 per cent. It comes with a free standard valuation, fees assisted legal services for remortgages and a £2,499 product fee. 

Matt Bartle (pictured), director of products at Leeds BS, said: “Recent years have seen a variety of changes for landlords, including new rules for portfolio landlords and tax changes that continue to affect those operating in the private rented sector. 

“We know these changes mean landlords are more actively managing their property portfolios to maximise their yield and making sure they have the best deals on their mortgages.”  

Alongside the two-year product, the society has cut rates on selected 80 per cent LTV BTL mortgages by up to 0.15 per cent.

Bartle added: “We keep our mortgage products under review and these rate reductions are part of our efforts to improve our proposition for landlords. 

“We continue to work closely with our intermediary partners to better understand and meet their needs, and those of their clients.” 

 

Foundation launches fee-assisted BTL specials

Foundation Home Loans has launched three fee-assisted five-year buy-to-let products available across its Tier 1 and Tier 2 product ranges. 

In its Tier 1 range – for those with a ‘near-perfect’ credit record – borrowers can access a 3.39 per cent five-year product. 

Within in its Tier 2 range – for borrowers with recent blips on their credit record or looking to find a more specialist property type – the lender has launched a 3.55 per cent deal and a specific HMO product for up to six occupants, priced at 3.59 per cent. 

All products are available up to 75 per cent LTV, with a maximum loan size of £750,000, and are offered with one free standard valuation, no application fee to pay and a one per cent product fee.  

The products are available for limited companies and individual, portfolio and non-portfolio landlords, and are offered to borrowers seeking to purchase or remortgage.  

Jeff Knight, director of marketing at Foundation Home Loans, said: “This sector is all about the provision of product options, giving landlord borrowers and their advisers a range of choices depending on their needs and circumstances. 

 

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