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West One makes 40bps rate cuts; CHL reduces pricing and updates ICR – round-up

  • 14/11/2023
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West One makes 40bps rate cuts; CHL reduces pricing and updates ICR – round-up
West One Loans has reduced rates across its core buy-to-let mortgages by up to 0.4 per cent and limited edition products by up to 0.24 per cent.

This includes its two-year fixed product within its core range which now starts from 4.74 per cent under the W1 criteria for borrowers with clean credit profiles. There is also a five-year fix which has been reduced by 0.35 per cent to 5.54 per cent for W1 borrowers, while for W2 borrowers with minor credit blips, the rate is 6.74 per cent. 

The lender has reduced rates on its holiday let products which are fixed for two and five-years by up to 0.35 per cent, to start from 5.84 per cent. 

Across its limited edition offering, West One Loans has reduced two and three-year fixed rates for portfolio and non-portfolio landlords by up to 0.24 per cent. Pricing now begins at 5.84 per cent. 

The five-year fixed deals in this range are up to 0.2 per cent lower in rate and start from 4.58 per cent. 

Andrew Ferguson, managing director of West One’s buy-to-let division, said: “We are making significant reductions right across our range as we pass on lower borrowing costs to brokers and their clients. 

“It’s always pleasing to be in a position to make rate cuts and to be able to offer landlords a more competitive range of lending options.”  

Ferguson added: “Naturally, pricing is part of our offer and we endeavour to provide the best rates whenever possible, but it’s important that we also combine a first-class service, compelling set of criteria and a common sense and pragmatic approach from experienced underwriters. 

“The series of changes that we have made over the past week puts us in a strong position to reach more brokers and to support more landlords in finding the right solution for them.” 


CHL Mortgages reduces rates 

Specialist buy-to-let lender CHL Mortgages has reduced its fixed rates by up to 0.39 per cent. 

Its individual and limited company two-year fixed rates now start from 5.4 per cent after a 0.35 per cent reduction, while its five-year fixes start from 5.27 per cent following cuts of up to 0.34 per cent. 

The lender’s two-year fixed rate for houses in multiple occupation (HMO) and multi-unit freehold block (MUFB) borrowing has been reduced by up to 0.39 per cent and starts from 5.3 per cent. 

CHL Mortgages’ refurbishment product range has been lowered by 0.36 per cent with five-year fixes starting from 5.23 per cent. 

It has also updated its interest coverage ratio (ICR) calculation for two-year fixes while the ICR for five-year fixes is unchanged. This is now 5.5 per cent or the initial pay rate plus two per cent, whichever is higher. 

Ross Turrell, commercial director at CHL Mortgages, said: “With long-term interest rates showing signs of stability we are seeing this latest round of welcome rate cuts. For the buy-to-let market we also have rents improving, tenant affordability increasing as wage rises kick in and a softening of house prices in real terms (taking account of inflation).  

“This has improved the prospects for landlords and we should see the sector start to gradually move forward as we head into 2024”. 

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