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Lenders making ‘slew’ of criteria changes as BTL rates ‘nearing the floor’ – Property Master

  • 08/11/2019
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Lenders making ‘slew’ of criteria changes as BTL rates ‘nearing the floor’ – Property Master
The cost of the average five-year fixed rate 75 per cent loan to value (LTV) mortgage fell by £8 per month, the biggest decline across buy-to-let offerings in the past month.


Property Master’s November 2019 Mortgage Tracker recorded rate reductions across the deals available to landlords and found the cost of a £150,000 loan dropped by £8 per month from October to November. 

Five-year fixed rates for 65 per cent LTV fell month-on-month by £6 while five-year fixed rates for 50 per cent LTV dropped by £4.  

Two-year fixed rates buy to let mortgage offers for 75 per cent LTV fell by £4 per month and for 65 per cent of the value of a property by just £1.   

However, average interest rates for two-year fixed rate buy to let mortgages for 50 per cent LTV went up by £2.    

The drops recorded in November were at a smaller rate compared to previous trackers where double-digit reductions were seen, the online broker said.   

With the Bank of England deciding to hold rates at their current level, Property Master said lenders were “nearing the floor” in how low borrowing costs can go.   

Angus Stewart (pictured), Property Master chief executive, said: “It will certainly be good news for landlords to see from our figures that monthly mortgage costs fell again, this time in five out of the six categories we track in our research.”


Opening up the market 

Stewart added: “Interestingly, in addition to rate cuts we are also seeing a slew of other mortgage criteria changes lenders are making to their product portfolios in an effort to attract landlord customers. 

“We have seen lenders loosening their stress tests; increasing the maximum length of borrowing terms; reducing their Interest Cover Ratios; and taking into account income other than that from rents.”  

He said: “It does appear to be a buyers’ market in terms of current buy-to-let mortgage deals meaning it pays to shop around and for landlords to make sure they are getting access to any and all deals that fit with their property financing needs.”


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