Landbay, Castle Trust and YBS Commercial make new year rate cuts – round-up

Its two-year fixed rate at 75 per cent loan to value (LTV) now has a rate of 2.65 per cent, down from 2.85 per cent. Its five-year fixed rate at 75 per cent LTV has been reduced by the same amount to 3.04 per cent, down from 3.24 per cent. 

The lender has also extended its green range criteria six months after its launch. It will now accept new-build properties, allowing borrowers to access lower rates for homes with an EPC rating between A and C. 

The range has also been streamlined into one product for homes with an A-C rating. Previously, there was a separate deal for homes with an A-B rating, and homes rated C. 

Rates have also been cut across its green offering, such as a five-year fixed rate at 75 per cent LTV for a property rated EPC A, B or C is now 2.94 per cent, reduced from 3.14 per cent for an A or B rated property and 3.19 per cent for a C rating. 

The lender has repriced its small houses in multiple occupation (HMO) and multi-unit freehold block (MUFB) properties, including new builds. This includes the 75 per cent LTV products which have seen rate reductions from 3.59 per cent to 3.34 per cent. 

Paul Brett, managing director, intermediaries at Landbay, said: “Despite the Bank of England raising the base rate by 0.15 per cent in December, we are in a position where we are able to lower rates. 

“We have access to strong funding lines and our funding partners are keen to support our competitive product position, which we intend to maintain.” 

He added: “We have been blown away by the interest and take-up of our green range as more property investors are realising the importance of making their property energy efficient. Around one in 10 of our loans are for new build property so it makes perfect sense to extend our green mortgage to this cohort of landlords.”

Castle Trust reduces rates and extends incentives 

Castle Trust Bank has cut the rate of its five-year fixed rate product, which comes with a five-year early repayment charge (ERC) period, by 0.59 per cent to 4.15 per cent. 

This is available up to 75 per cent LTV. The lender will also maintain its special rate of 3.95 per cent up to 70 per cent LTV, and 4.5 per cent up to 75 per cent LTV for five-year fixes with a two-year ERC. 

It will also extend the cashback offer it introduced last month from the end of February to the end of April. This offers up to £5,000 plus VAT on valuations fees across its entire product range. 

Castle Trust has also changed its valuation criteria so all property portfolios will now be assessed on open market value, freehold blocks up to 20 units will be assessed on aggregate market value and freehold blocks with more than 20 units will be assessed on investment block value. 

Rob Oliver, sales director at Castle Trust Bank, said a good specialist buy-to-let proposition combined rate, service, criteria and incentives.  

He added: “Our new year enhancements include a significant rate reduction on one of our most popular products, the extension of great rates we had previously introduced as special offers, and we are continuing our valuation cashback offer until the end of April. 

“This has already been in high demand and we know that the current environment and prevalence of the Omicron variant means many businesses in the property industry are currently working under capacity, which is prolonging the process for many transactions. So, it seems only right that we extend this offer to give as many customers the opportunity to benefit from it as possible.” 

YBS Commercial adjusts rates and holiday let requirements 

YBS Commercial Mortgages has reduced the rate of its five-year fixed rate product for buy-to-let borrowers and changed the requirements for holiday let applications. 

The rate cut has been made to the product at 65 per cent LTV which has a rate of 3.05 per cent, down from 3.2 per cent. Loans of up to £20m are available. 

Its holiday let mortgage now allows landlords to take out a product in their own name, removing the need to have a limited company vehicle in place. 

Mike Davies, head of business development at YBS Commercial Mortgages, said: “We’re really pleased to reduce the rate on our five-year fixed rate product at 65 per cent LTV. The change reflects our desire to support investment in the UK economy and is based on feedback from our broker panel members. 

“The changes to the holiday lets product will open up the market to borrowers and make it easier for those looking to take advantage of the current demand for staycations. 

“We’re always looking for ways to exceed expectations, and we hope this will be welcome news for brokers and their clients.”