The BTL stress rate for these deals will be 4% or the pay rate, whichever is highest.
The firm said there would be no changes to the stress rate applied for BTL limited company mortgage applications.
Damian Thompson, director of landlord at TMW, said: “These positive changes to our stress rates will serve to boost affordability. They will enable landlords to borrow more with us but, at the same [time], will ensure that we continue to lend responsibly.”
Jeni Browne, business development director at Mortgage Finance Brokers, said: “So many landlords have been unable to remortgage or acquire new properties because of the more onerous rental calculations that have been in play on the back of higher interest rates – this has been at a huge cost to the private rental sector.
“Seeing the UK’s largest BTL lender tackle this head-on by reducing their rental calculations, thus allowing landlords to borrow more per pound of rental income, will mean that property investors will be able to remortgage, thus accessing better mortgage rates, and get investing once more.”
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ModaMortgages slashes BTL rates
ModaMortgages has lowered selected 75% LTV BTL standard, house in multiple occupation (HMO) and multi-unit freehold block (MUFB) BTL deals by up to 15 basis points.
The lender’s standard two-year fixed rate at 75% LTV is priced at 3.44% and its standard five-year fixed rate comes to 4.94%.
Rates for small HMO and MUFB BTL deals, which can be used for properties up to six bedrooms or units, start from 3.54% for two-year fixed rates at 75% LTV and 5.04% for its five-year fixed rate equivalent.
Darrell Walker, ModaMortgages’ group sales director, said: “We’re pleased to announce we’re further able to support landlords with rate reductions of up to 15 basis points on selected 75% LTV buy-to-let products.
“This latest reduction shows just how committed we are to making sure brokers have the products they need to help meet their clients’ buy-to-let aspirations at their disposal.”
Landbay lowers non-portfolio rates
Landbay will reduce rates by up to 0.15% across its non-portfolio BTL range, and it has added five-year fixed rate options.
The non-portfolio range is aimed at landlords with three or fewer mortgaged properties.
Highlights include its five-year fixed standard and automatic valuation model (AVM)-supported deals at 75% LTV with a 6% fee, which come to 4.29%, and its 2% fee option at 5.09%.
Landbay has added a five-year fixed rate option up to 55% LTV with a rate of 4.84% and a 3% fee.
The firm has also added three standard five-year fixed rates at 55% LTV, beginning from 4.39%.
Rob Stanton, sales and distribution director at Landbay, said: “Following new innovation in our product transfer range, it’s fantastic to bring to market rate reductions and new products in our ever-popular non-portfolio range. This is an important segment of the market that absolutely needs support from lenders, so it is great to be able to assist our broker partners further in meeting this growing demand.
“Our activity this week is a clear example of our commitment to support the buy-to-let market. Not only are we making sure our products remain competitive, but our product range is broad enough to support landlords of all sizes and can help with both new purchases and refinancing. As ever, we continue to explore every opportunity to improve and expand our range to benefit our broker partners and their landlord clients.”
Landbay recently added additional borrowing overpayment options to its product transfer proposition.
