Landbay cuts rates by up to 0.19 per cent and launches two products
The rate changes apply to its two-year fix at 75 per cent loan to value (LTV), which has been cut by 0.19 per cent to 2.95 per cent.
Its five-year fixed at 75 per cent LTV has been reduced by 0.04 per cent to 3.35 per cent. Both products are subject to a 1.75 per cent fee and a free valuation.
The same rate changes have been made on its parallel two and five-year fixed products at 75 per cent LTV but are only subject to a 1.5 per cent fee.
All the above products are available for standard properties only and can be taken out by limited companies and individuals.
The recently launched products aimed at landlords with three properties or less include a two-year fixed rate at 2.85 per cent at up to 65 per cent LTV. The lender has also brought in a five-year fixed with a rate of 3.25 per cent up to 65 per cent LTV.
Both are available on loans of up to £1.5m.
Landbay’s managing director for intermediaries Paul Brett (pictured) said: “These rates continue to consolidate Landbay’s leading position as a specialist buy-to-let lender, and I am sure there are many brokers out there who will be taking a sigh of relief at being able to offer their clients larger loans that offer added flexibility.”
Paragon and Landbay targeting BTL as rates drop below three per cent
Paragon has lowered fixed rates across ten buy-to-let mortgages by up to 0.45 per cent.
The cuts apply to two and five-year fixes for landlords who are purchasing or remortgaging in their own name or through a limited company.
All the products come with a free valuation and with zero fees and/or up to £750 cashback.
For portfolio landlords, the five-year fixed rate was cut by 0.45 per cent to 3.75 per cent, at 75 per cent loan to value (LTV). The product comes with no fee and £750 cash back.
The two-year fix for portfolio landlords was cut by 0.05 per cent to 3.20 per cent, with one per cent product fee and £750 cashback.
The five-year rate is available on single self-contained properties (SSCs) and the two-year on homes in multiple occupation (HMOs) and multi-unit blocks (MUBs).
Non-portfolio clients were offered a five-year fixed rate of 2.99 per cent at 70 per cent LTV, down 0.25 per cent. The product fee has also been reduced by 0.5per cent to 1.5 per cent.
Also for non-portfolio clients is a five-year fix of 3.65 per cent at 75 per cent LTV, down 0.29 per cent. The product fee is zero and cashback £350.
Both these five-year rates are available on SSCs.
Moray Hulme, director of mortgage sales at Paragon (pictured), said: “The extension of the stamp duty holiday means we’re likely to see further increased purchase activity over the coming months.
“Additionally, a significant number of landlords opted for five-year fixed rate products as a result of the three per cent stamp duty surcharge in 2016. We expect an increased focus on remortgage activity as these mortgages mature.
“Landlords are adept at responding to the market and we aim to support this by developing competitive options for those modifying their portfolios in line with current conditions,” Hulme said.
Landbay goes sub-three per cent
Landbay launched what it claimed was the country’s only below-three per cent five-year fixed rate buy-to-let (BTL) mortgage for limited companies.
The new rate of 2.99 per cent is available up to 50 per cent loan to value (LTV) on standard properties with loan sizes up to £1m.
“This should be positive news for brokers and landlords. We are at the forefront of driving down rates and making buy to let ever more affordable at at time when landlords need it most,” said Paul Brett, managing director at Landbay Intermediaries.
Foundation reduces rates on two-year BTL fixes
The highlights included a two-year fixed rate, at 75 per cent LTV, reduced to 2.69 per cent from 3.05 per cent. The product is available to individuals and limited companies.
The two-year fix at 75 per cent LTV for homes in multiple occupancy (HMOs) was cut to 2.89 per cent, down from 3.34 per cent. Again it’s available to individuals and limited companies.
The two-year fixed rate on products covering HMOs with more than eight bedrooms, or multi-unit blocks (MUBs) of more than 10 units, was cut to 2.99 per cent.
All the lender’s two-year products attract fees of 2 per cent, early repayment charges of 2 per cent or 3 per cent and have end-terms of 31 January 2022.
“To be able to cut prices by up to 45 basis points is significant. It gives greater choice for landlords, especially HMO clients as the interest cover ratio is highly competitive in this market at only 145 per cent at 5.5 per cent,” said Jeff Knight, director of market at Foundation Home Loans.
“We’ve seen growing appetite for two-year products in recent months from landlords looking for rate security alongside freedom to be flexible after 2022,” he added.