Build to rent reaches highest PRS market share

Build to rent reaches highest PRS market share

According to research from Foxtons, which looked at build-to-rent completions since 2018, and compared to the total private rented stock (PRS), this is the largest proportion of market share since 2018.

It describes a property development purpose-built to be rented rather than selling to individual homeowners. It is usually owned by institutional homeowners or property management companies.

The research reveals that build-to-rent completions came to 31,409 in 2018, making up 0.6 per cent of the five-and-a-half million privately rented homes in the lettings sector.

The sector has grown consistently every year since then and now sits at 100,372 as of 2023. This is 1.8 per cent of all UK PRS stock. The report said that this represents a 69 per cent increase in such completions since 2013.

Foxtons added that the scheme has made up one per cent or more of the UK PRS since 2020, figures show.

The growth in London is also impressive, increasing from 1.8 per cent of London PRS in 2018 – equal to 18,160 completions – to 4.2 per cent of London’s PRS in 2023. This equates to around 46,747 completions.

From a regional perspective, which excludes London, there has also been impressive growth, rising from 0.3 per cent of PRS in 2018 to 1.2 per cent now.

 

Build-to-rent demand will grow

Sarah Tonkinson, Foxtons Institutional PRS and build-to-rent managing director, said that there had been “phenomenal growth” in the build-to-rent sector in recent years, especially in London.

“However, it’s fair to say that the sector still remains in its relative infancy, and so the potential for further growth is vast. With a move towards longer-term renting until later in life, tenants expect more both with respect to the quality of rental accommodation available, and the security and certainty that long tenancy agreements provide them.

“With the build-to-rent sector offering this, and more, we only anticipate demand to increase and for stock levels to follow suit in order to satisfy the evolving needs of renters,” she added.

Buy-to-let fixed rates fall to lowest level in two years – Moneyfacts

Buy-to-let fixed rates fall to lowest level in two years – Moneyfacts

According to figures from Moneyfacts, the average two-year fixed rate across all loan to value (LTV) tiers is 5.49 per cent, with the average five-year fixed rate standing at 4.87 per cent.

The report noted that this is down from a peak six months ago of 6.88 per cent for an average two-year fixed rate and 6.72 per cent for an average five-year fixed rate. These were the highest in Moneyfacts electronic records, which go back to 2011.

Looking at specific LTV tiers, some of the largest decreases were at 60 per cent LTV. The average two-year fixed rate at 60 per cent LTV fell by 1.42 per cent to 5.22 per cent, with the average five-year fixed rate contracting by 1.31 per cent to 4.87 per cent.

Going up to 75 per cent LTV, the average two-year fixed rate decreased by 1.36 per cent to 5.51 per cent and the average five-year fixed rate went down by 1.25 per cent to 5.51 per cent.

The average two-year fixed rate at 80 per cent LTV has reduced by 1.24 per cent to 6.3 per cent and the average five-year fixed rate has fallen by 1.09 per cent to 6.2 per cent.

 

Total buy-to-let products fall by nearly 300 since start of 2024

Regarding overall buy-to-let product availability, since the start of the year there has been a contraction of products from 3,114 in January to 2,838 in February.

This is still above 2,585 reported in August last year, when buy-to-let pricing was at its peak, and higher than February 2023 figure of 2,246.

Looking at two-year fixed rates, product availability overall has increased slightly from 968 in January to 972 in February. This is also up from 676 in August and 539 in February last year.

On the five-year fixed rate side, there were 1,215 deals in February, a fall of 109 products on the prior month. It is up, however, on August figure of 1,107 and a recovery from 865 in February last year.

Weeks ahead will be crucial for buy-to-let pricing

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said that landlords worried about interest rates would be pleased to see that buy-to-let pricing has fallen to its lowest point since September 2022.

“These rates sat at a record-high just six months ago, so this is positive news for borrowers who have been patiently waiting for fixed rates to come down. However, it is possible fixed rates will edge up slightly in the coming weeks due to volatile swap rates, so those looking to refinance may wish to secure a deal quickly to not be left disappointed,” she noted.

Springall said that a “notable area of volatility in the market” was around product choice, with the overall count falling month-on-month, but it was up 250 deals compared to six months ago.

“The ebb and flow of deals makes it essential for prospective borrowers to seek advice to navigate the options available to them. Deeper analysis of product choice shows five-year fixed offers have waned month-on-month, but two-year fixed offers are resilient.

“It will be interesting to see how lenders adjust their ranges in the weeks to come. There are more two and five-year fixed mortgages now than there were six months ago,” she said.

Springall pointed to strong rental growth of 8.3 per cent in Great Britain, which was the lowest for 13 months, but is expected to rebound ahead of inflation for the rest of the year.

“Still, there will be existing landlords concerned about the ongoing profitability of a buy-to-let portfolio as their margins have been impacted by a cull in mortgage rate tax relief, tax changes for CGT and holiday lets, plus new EPC requirements. Any investor would be wise to seek advice before they commit, and providers will need to work hard to encourage borrowers to refinance and attract new business,” she added.

Landbay introduces fee-free buy-to-let products

Landbay introduces fee-free buy-to-let products

There is a standard option with a rate of 5.69 per cent, which is available at 75 per cent loan to value (LTV). This has a maximum loan size of £1.5m. 

The second product is included in Landbay’s recently launched range of deals that make use of automated valuation models (AVMs). This also has a rate of 5.69 per cent and is available at 70 per cent LTV. 

The maximum property value allowed for the latter product is £750,000. 

Both options have no product fee and a minimum loan size of £65,000. 

Rob Stanton (pictured), sales and distribution director at Landbay, said: “We pride ourselves on our ability to respond quickly to opportunities to expand and enhance our product range. It’s all part of our commitment to our broker partners to provide a product range that is broad and diverse enough to meet the requirements of their landlord clients across the country. While the rate may not be suitable for every client, it will certainly work for those with no appetite for fees or those borrowers with higher-yielding properties.

“As affordability continues to improve, we’re thrilled to offer landlords two superb zero-fee options, including our latest addition to the AVM product range. This range has been met with outstanding feedback from our intermediary partners, further enhancing our commitment to providing valuable solutions in the property market.” 

The lender recently introduced its AVM range, with rates starting from 4.29 per cent. This offering was launched to speed up the time to offer, and Landbay said that, in some cases, it could issue an offer within 24 hours from the decision in principle being submitted. 

Last month, Landbay was named as one of the BTL lenders with the highest broker satisfaction, according to the Mortgage Lender Benchmark from Smart Money People, which covered the second half of 2023. 

Buy to let: a resilient sector deserving of support – Davies

Buy to let: a resilient sector deserving of support – Davies

Many a recent headline has suggested the demise of the private rented sector (PRS), with rumbles of BTL investors potentially exiting the market en masse as higher interest rates take their toll on a sector already squeezed to the limit by a punishing tax regime and costly regulation.

This fear of the BTL market shrinking is justified. Intermediary Mortgage Lenders Association (IMLA) carried out new research in November last year that examined the financial position of BTL landlords for the first time.

The Landlord Survey revealed a market predominantly supplied by small businesspeople making modest profits out of their rented properties – and those with mortgages facing the prospect of struggling to break even in the next two years, with their cost of borrowing soaring by an anticipated 80 per cent as they refinance off historically low fixed rates.

However, our research also found that, somewhat counterintuitively, 35 per cent of all landlords and 50 per cent of portfolio investors plan to expand their portfolios over the next five years, while only 18 per cent of the total and 17 per cent of portfolio landlords intend to downsize over that period.

 

Powering through

Other studies confirm this fortitude in the face of adversity.

For example, data published by BTL specialist The Mortgage Lender (TML) in January showed a majority of landlords grew their property portfolios in 2023, with more set to do so over the coming 12 months. In total, 52 per cent of BTL residential owners added to their portfolios in 2023, with 25 per cent buying a single property and 27 per cent purchasing multiple homes.

According to the TML survey, over the coming year, 26 per cent of landlords plan to add another single property, while another 26 per cent plan to invest in multiple properties.

Such resilience may be driven by numerous factors, including the desire to meet the continued rising demand from tenants, the plan to hold on to property to pass down to children and grandchildren, or simply great confidence in the long-term reliability of property as an asset class.

An earlier TML survey (Q4 2023) found that 74 per cent of residential BTL landlords felt confident about the performance of the property market over the coming 12 months. The most optimistic were those landlords who predominantly owned homes of multiple occupancy (HMOs), at 86 per cent, student accommodation landlords (84 per cent) and portfolio landlords with more than five properties (82 per cent).

 

Encouragement for smaller landlords

Such evidence contradicting predictions of an exodus is very welcome.

The PRS provides homes for around 20 per cent of the UK’s households, and demand continues to increase more quickly than supply. A mass exit of landlords could create a serious issue for tenants, deepening the supply/demand imbalance and further increasing rising rents.

And we are not out of the woods yet. Our research, and that of TML, suggests that the most bullish landlords are the larger players. Smaller providers are more likely to be walking the tightrope between profit and loss, and those smaller players make up 61 per cent of the market.

Any further financial blow to this majority cohort, in the form of further regulation, added taxes or further hikes in interest rates (a possibility that cannot be entirely dismissed, given the current global economic insecurity), could tip more precariously positioned BTL borrowers over the financial parapet and out of a market that desperately needs them.

In the future, politicians and regulators might be wise to adopt a more nurturing stance towards the beleaguered BTL sector and encourage landlords’ perseverance, rather than seeking to impose more pressure on this vital part of our housing landscape.

Fleet launches no-completion-fee deals; MFS re-adds two- and three-year fixes – round-up

Fleet launches no-completion-fee deals; MFS re-adds two- and three-year fixes – round-up

These are available across its standard, limited company and houses in multiple occupation (HMO)/multi-unit block (MUB) ranges. 

The products are at 75 per cent loan to value (LTV) with a rate of 5.59 per cent for standard and limited company borrowers or 5.93 per cent for HMO and MUB borrowers. 

Fleet, which last year lowered two- and seven-year fixes, said the zero-completion-fee feature would offer borrowers a “considerable, upfront saving”. There is a £199 booking fee as well as free standard valuations for standard and limited company borrowers against properties with a value up to £500,000.  

 

Equivalent to a sub-five per cent option

Steve Cox, chief commercial officer at Fleet Mortgages, said: “Last year, the challenge of a higher-interest-rate environment, and what it required in terms of affordability criteria, meant we saw a large number of lower-rate/higher-fee products being launched. 

“Now that we have seen rates come off those highs, with swap rates stabilising, and a far more competitive rate environment, we wanted to ensure we offered a different set of products that did not come with any completion fee whatsoever.” 

He added: “These three limited-edition five-year fixes offer landlord borrowers a highly competitive rate from the outset, but with no completion fees to pay, meaning they do not have to pay those costs upfront or add the cost of the fee to the loan. 

“Feedback from intermediary partners suggests these offer a strong option, particularly for portfolio landlord clients who are seeking to capital-raise but want to minimise any reduction in the value of their equity.” 

Cox said that, without the fee, the product rates for standard and limited company borrowers were equivalent to a five-year fixed deal with a rate of 4.99 per cent and a three per cent fee. He said this made it a “very strong product offering and one that will mean no initial outlay or the addition of potentially thousands of pounds to the overall loan”. 

He added: “Advisers will clearly have to work with landlord clients to review what option is best for them, but these new products provide them with another route to move down, if the maths can work for the borrower and they would like to benefit from a zero completion fee approach.” 

 

MFS relaunches two- and three-year fixes 

Market Financial Solutions (MFS) has brought back its shorter term fixed rates for BTL mortgages and reduced tracker product pricing.  

The lender has added two- and three-year fixes with no rate stressing. Pricing starts from 4.59 per cent. 

The lender has also cut tracker mortgage rates by between 0.2 and 0.25 per cent. 

Paresh Raja, CEO of MFS, said: “The time is right for us to introduce two-year and three-year fixed products back into our BTL mortgage range. We know that, while they do not want to be locked in for so long, many brokers and borrowers take out five-year fixes due to a lack of an alternative or because they can get a longer-term fix without rate stressing. The fact we are bringing in shorter fixes but without rate stressing will give BTL investors much more control and choice when seeking the right product.  

“Everything we do is designed to empower brokers and borrowers. Our skill, experience and funding lines allow us to provide greater flexibility and optionality, and we’re confident that our expanding BTL mortgage range will remain in high demand in 2024.”  

Molo lowers BTL stress rates

Molo lowers BTL stress rates

The stress rates for two-year fixed rates for UK residents will fall from 9.94 per cent to 7.94 per cent, which the lender said will boost borrower affordability by 20 per cent.

For tracker products for UK residents, the stress rates will go from 9.94 per cent to 8.39 per cent to 9.49 per cent. Molo said that this will increase borrower affordability by up to 16 per cent.

Non-UK resident two-year fixed rate stress rates have reduced from 10.99 per cent to 8.99 per cent, improving borrower affordability by 18 per cent.

Non-UK resident tracker product stress rates have decreased from 10.99 per cent to 10.49 per cent to 10.99 per cent. This will increase borrower affordability by up to five per cent.

Molo reiterated that its “stress test logic” for two-year fixed rates was the higher of pay rate, follow-on rate or 5.5 per cent.

For five-year fixed rates, it is the pay rate, and for tracker rates, it is the higher of pay rate plus two per cent, follow-on rate or 5.5 per cent.

For variable rates, it is the higher of pay rate plus two per cent or 5.5 per cent.

Mark Michaelides, Molo’s VP of strategy, said: “Affordability has been one of the biggest challenges facing landlords over the past 12 months, so we’re delighted to announce a recalibration of our stress test to reflect current market conditions and help support the private rental market.

“We will continue to lend responsibly, providing confidence to brokers and borrowers alike.”

The change in stress rates come off the back of recent rate cuts by Molo, where it made reductions of up to 0.71 per cent across its fixed rates.

The lender also made the change last year to include personal income in BTL affordability assessments and released non-resident BTL mortgages last year.

Francesca Carlesi, founder and chief executive of Molo, left the firm last year, with Andrew Chepul, CEO of investor ColCap Financial serving as interim executive chairperson.

How buy-to-let lenders are preparing for the year ahead ‒ Cox

How buy-to-let lenders are preparing for the year ahead ‒ Cox

There was a day’s grace as we moved into 2024, but the mortgage market – and lenders in particular – certainly didn’t wait any longer in terms of making some big pricing and product moves. Buy-to-let lenders were no different, with many including Fleet, cutting rates on products and reshaping ranges to reflect a much more competitive pricing environment, fuelled by lower swap rates.

I think it’s also fair to say the market will not stop here, particularly if swaps do continue to either maintain their current levels, or indeed track lower still. As I write, two/three/five/seven and 10-year SONIA swaps are all below where they were a year ago, which we were not able to say during nearly all of 2023.

 

Buy-to-lenders making moves

So, what might these moves by buy-to-let lenders specifically mean within the sector, which spent a challenging 12-month period seeking to help advisers and their landlord borrowers deal with increased rates and the issues this raised in terms of affordability and securing the right loan amounts?

Well, as we know, there were a plethora of lower rate/higher fee deals launched in order to deal specifically with this issue, and while many of those products remain including our own, we might well see these begin to drop in number if rates continue to fall.

Some buy-to-let lenders have already pulled these products from their ranges, and advisers will be working on the numbers to see if they continue to make sense for borrowers. As mentioned, I believe if rates continue to track lower, there will be less demand for these products.

Secondly is the decision around where rates might be going next and what this means for borrowers when the better current rates are at longer terms – mostly five-year fixes.

This may mean that trackers become more relevant over 2024, whereby landlord borrowers opt to take a higher-priced tracker product now, but without an early repayment charge (ERC), allowing them to ‘Track to Fix’ if/when they feel fixed rates might have bottomed out.

It would not be surprising to see borrowers hedging their bets, and from an adviser perspective, this could be the right short-term recommendation, allowing you to keep a close eye on market moves and then move that client again at some point in the future.

Clearly, there is an accepted risk for the client here, but there is a growing sense that, for example, bank base rate will begin to be cut this year, and if lenders continue to react as they have been, there may be a more suitable, cheaper longer-term fixed-rate option available later in the year, rather than now.

 

New buy-to-let lenders

Finally, and this remains a constant consideration for both advisers and their landlord borrower clients, rumours continue to swirl about new buy-to-let lenders and when/if they launch, advisers will need to judge them on their service, support and understanding of this sector. Plus, advisers also need to be aware that cheapest rate very rarely means the best service, and this is certainly the message I’m hearing from advisers, even at this very early stage of the year.

Having the cheapest rate right now will always draw attention, but this must be managed in a service sense as well, particularly when time is of the essence, and both advisers/landlords need swiftness and certainty.

Weigh up exactly what you are recommending and with which lender, because if the service and support isn’t there, or they have not been able to cope with the business their price-cutting has generated, then you could end up at the back of a queue and any perceived monthly mortgage payment saving won’t be worth the time you spent recommending it, or the time spent explaining to the client why the case hasn’t moved forward.

Record number of buy-to-let limited companies set up in 2023 ‒ Hamptons

Record number of buy-to-let limited companies set up in 2023 ‒ Hamptons

Hamptons research reveals that in the first half of the year buy-to-let limited companies were two per cent lower than the same period in 2022, partially due to the mini Budget, but as mortgage rates rose limited company incorporations rose in the second half of the year to nine per cent above 2022 levels.

Scotland had the largest increase, with new companies up 8.4 per cent year-on-year.

The South West and North East were the only regions to record a small fall in new buy-to-let limited companies being set up, but the number of homes owned in corporate structure rose.

The report said that at the start of this year there were 345,426 limited companies that could hold buy-to-let properties, an 11.6 per cent jump from the beginning of last year.

It continued that buy-to-let companies own a total of 615,077 properties in the UK, an 82 per cent increase since the end of 2016 when ta changes came into force meaning that personal name landlords could not claim mortgage interest relief.

Within that figure, three quarters have a mortgage charges against them, with the number of outstanding limited company mortgages have jumped 10 per cent over the last 12 months, despite the total number of buy-to-let mortgages falling by three per cent.

Hamptons added that most the growth in buy-to-let incorporation came from smaller landlords, with the number of homes held in companies with a single property going up by 21.9 per cent year-on-year. This compares to a 3.8 per cent increased in the number held by companies owning 20-plus homes.

The report added that companies owning 20 plus homes were the only ones to see the number of mortgage charges grow faster than the number of homes, which the report said showed that investors were leveraging up their portfolios.

 

Rental growth over 10 per cent in 2023

The average rent for a newly let property in Great Britain rose by 10.2 per cent year-on-year in December, the strongest end of year growth since records began in 2015.

The average tenant moving into a new home would be paying £124 more a month in rent, equal to an extra £1,488 each year.

Hamptons said that rents have risen faster than inflation for the last nine months, with rent outpacing inflation by an average of 3.5 per cent between March and November.

The estate agency said that the pace of rental growth has cooled slightly, but said that it hasn’t slowed as quickly as inflation and there were “few signs” that there would a significant slowdown any time soon.

This is due to higher landlord costs along with a lack of homes available to rent.

Those in the East of England face the biggest hikes at 13.3 per cent, equal to a £153 per month more than a year ago. Greater London, the Midlands and the North also experienced double digit hikes in 2023.

Hamptons said that as mortgage rates fall, some upward pressure on rents will ease as fewer landlords remortgaging in 2024 may need to increase rent as steeply to cover remortgage costs.

On the flip side, lower rates may also enable renters to become homeowners, lowering demand.

Hamptons said that it forecast rents on newly let properties rising by seven per cent in 2024, then five per cent in 2025 and five per cent in 2026.

 

Buy-to-let limited companies show ‘no let-up’

Aneisha Beveridge, head of research at Hamptons, said that despite last year’s slowing sales market there was “no let-up in landlords rushing to incorporate”, with a record number of limited companies set up.

She noted that this “suggests a long-term commitment from landlords ‒ particularly given the upfront costs associated with incorporating”.

Beveridge explained: “The growth has been driven mostly by existing landlords moving properties into a corporate structure to shelter themselves from higher interest rates. Meanwhile, the number of new landlords setting up shop has remained relatively muted.

“For as long as landlords continue rolling off cheap fixed-term mortgages onto rates which are twice or triple what they were paying, the number of homes being put into a corporate structure will remain high.”

She added that the number of buy-to-let incorporations each year was likely to run into the region of 40,000 to 50,000 in the foreseeable future, and in the longer-term, the current tax regime could “push half of all rental homes into a limited company, significantly reducing the existence of landlords who own buy-to-lets in their personal name”.

“Pressures on the rental market show few signs of abating. Rental growth has been more persistent than wider inflation, predominantly due to the scale of the costs faced by most landlords as a result of higher interest rates.

“Slightly lower mortgage rates in 2024 should alleviate some of these pressures and take some of the heat out of the rental market, but tenants will probably continue facing bigger rent increases than they did pre-Covid,” Beveridge noted.

Landbay and Fleet Mortgages lower rates – round-up

Landbay and Fleet Mortgages lower rates – round-up

It is the second round of rate cuts that Landbay has made this week.

Landbay has reduced its standard two-year range by up to 0.35 per cent and across its two and five-year small Houses of Multiple Occupation (HMOs)/multi-unit freehold blocks (MUFB) range by up to 0.4 per cent.

Two-year like-for-like products have gone down by up to 0.35 per cent.

The firm is offering up to 55 per cent loan to value (LTV), 65 per cent LTV and 75 per cent LTV and its variable fee structure goes from three per cent to six per cent to improve affordability.

Highlights include its two-year standard at 65 per cent LTV at 3.94 per cent with a six per cent fee and its 75 per cent LTV equivalent the rate is 4.09 per cent.

Its two-year small HMO/MUFB deal at 75 per cent LTV is set at 4.14 per cent with a six per cent fee and its five-year version is 5.09 per cent.

 

Landbay: ‘Second round of cuts in a week’

Rob Stanton, sales and distribution director at Landbay, said: “Following a considerable rate reduction across our five-year fixed range, we are pleased to announce a second round of cuts in the same week. Today’s news strengthens the tools available to our broker partners to meet the broad range of needs across the entire market.

“There’s no question shorter-term fixes remain popular as landlords weigh up their options in the current market. Changes to our HMO/MUFB range also help landlords answer persistent demand in the rental market among students, transient workers and lower-income individuals.

“Meanwhile, improvements to our like-for-like range are well timed, given the high levels of mortgage maturity still expected across the sector this year.”

 

Fleet Mortgages reduce all fixed rates

Fleet Mortgages has cut two, five and seven-year fixed rates across its three core ranges: standard, limited company and HMO and MUB range by up to 0.15 per cent.

For standard and limited company borrowers, its two-year fix up to 75 per cent LTV is priced at 4.89 per cent; five-year fixes up to 70 per cent LTV come to 4.59 per cent and up to 75 per cent LTV, pricing stands at 4.99 per cent.

Its green five-year fix (for properties with an A-C Energy Performance Certificate (EPC) rating), up to 75 per cent LTV, has gone down to 4.89 per cent and its green seven-year fix up to 75 per cent LTV has decreased to 4.79 per cent.

Within its HMO/MUB range, its two-year fix up to 75 per cent LTV has fallen to 5.29 per cent and five-year fixes up to 70 per cent LTV are 4.99 per cent and up to 75 per cent LTV pricing comes to 5.33 per cent.

The lender’s green five-year fix up to 75 per cent LTV is 5.23 per cent and its green seven-year fix up to 75 per cent LTV has come to 5.13 per cent.

Steve Cox, chief commercial officer at Fleet Mortgages, said: “A fast-moving mortgage marketplace requires the ability to move quickly and we are therefore pleased to be able to cut rates once again on all our fixed-rate products across our three core ranges.

“All two, five and seven-year fixes are benefiting from a 15 basis point reduction, and we believe this will provide further, highly-competitive product options to advisers with both purchasing and remortgaging landlord clients.”

He added: “Specifically, history tells us that when we have five-year fixed-rate deals at 75 per cent LTV under five per cent payrate, this helps landlord borrowers meet affordability, and is something of a magic number in terms of helping clients secure the loans they require.

“We also have tracker and green tracker options and these are also proving popular for those landlords who want to secure the finance they need right now, with the option to shift to a fix later down the line if rates continue to move lower.

“We are here to support all our adviser partners with all their buy-to-let client needs, so would urge anyone requiring help in this area, to start the conversation with Fleet immediately.”

Accord Mortgages slashes BTL rates

Accord Mortgages slashes BTL rates

The lender is lowering five-year fixed rates by up to 0.95 per cent, its three-year fixed rates by around 0.7 per cent and two-year fixed rates by around 0.5 per cent.

The changes came into force from 8am on 9 January.

Its five-year fixed purchase rate at 80 per cent loan to value (LTV) has fallen from 5.89 per cent to 4.94 per cent.

The lender’s two-year fixed purchase rate at 80 per cent LTV has decreased from 6.14 per cent to 5.64 per cent.

The firm’s three-year fixed purchase rate at 80 per cent LTV has fallen from 5.99 per cent to 5.29 per cent.

All the above products come with a £995 fee, free standard valuation and £250 cashback.

 

Accord Mortgages: ‘Passing on further value to brokers’

Aidan Smith, buy-to-let mortgage manager at Accord Mortgages, said: “The markets have responded very positively to pre-Christmas inflation data which showed this key cost index was falling faster than the government predicted, and the Bank of England’s efforts to control it are working.

“This has given us a welcome opportunity to pass on further value to brokers and their clients through substantial rate cuts across our range, including a market leader and some very competitive other options.

“We will continue to closely monitor market trends with a view to taking all possible opportunities to support brokers and landlords as the year unfolds.”