Foundation, Precise and Gatehouse snip buy-to-let rates

Precise Mortgages has lowered rates and fees across its buy-to-let product range.

It means the lender now offers a two-year fix at 2.79 per cent with 1.5 per cent fee to limited company borrowers, as well five-year rates from 3.39 per cent.

Houses in multiple occupation (HMO) deals now start at 2.89 per cent and 3.59 per cent for two and five-year fixes respectively.

Foundation lowers rate of five-year deal

Foundation has dropped the cost of its five-year buy-to-let fixed rate mortgage at 75 per cent loan to value (LTV) down to 3.44 per cent – from a previous rate of 3.54 per cent.

The deal comes with a two per cent fee and is available to individual landlords, as well as those using limited companies.

It comes after Foundation relaunched its entire buy-to-let and residential product ranges earlier in the month.

George Gee, commercial director at Foundation Home Loans, said: “Our five-year products support landlords looking for a more generous loan for their rental income, given that our interest cover ratio (ICR) is calculated at 125 per cent at the pay rate – in this case 3.44 per cent – for limited companies and basic-rate tax-payers, and 145 per cent for other borrowers.

“The next couple of months also represent a real opportunity for advisers given the anticipation that a significant number of borrowers who bought before the stamp duty increase in 2016 will be coming to the end of their deals now.

“This five-year rate plus our entire buy-to-let range is available for those seeking to remortgage and offers excellent rates and criteria to support landlord clients as they refinance and potentially add to portfolios.”

Gatehouse slices rates on all buy-to-let mortgages

Gatehouse Bank has trimmed costs on two and five-year fixed term landlord mortgages.

The reductions include multi-unit freehold blocks (MUFBs) and HMOs and apply to all types of buyers.

For UK residents buying as individuals, rates for the bank’s two-year fixed term product have been reduced by 0.25 per cent, with the new rates standing at 3.49 per cent for 65 per cent Finance to Value (FTV), and 3.69 per cent for 80 per cent FTV.

FTV is the Shariah-compliant equivalent of LTV.

But the most significant reductions apply to UK expats, either buying as an individual or corporation, where the new BTL rental rate for a two-year fixed term is 3.69 per cent, a fall of 0.61 per cent at 65 per cent FTV.

Rates for the five-year fixed term mortgages have also decreased, dropping by 0.35 per cent to 3.85 per cent for a 65 per cent FTV, and by 0.34 per cent to 4.05 per cent for 80 per cent FTV.

Rates for UK corporations are now the same as for individuals, with reductions of 0.51 per cent made for two-year fixed rates, and 0.60 per cent for the five-year fixed products.

Paul Stockwell, chief commercial officer at Gatehouse Bank, said: “We are delighted to make our buy-to-let products even more accessible to customers by cutting rates across our entire range.

“We have taken significant steps to improve our eligibility criteria in recent years, and we remain committed to our manual underwriting process, aiding customers who sometimes struggle to access finance.

“Our commitment to treating every customer on an individual basis has proved particularly beneficial to UK expats, and we’re also very pleased to offer reduced rates on HMO and MUFB products.”