Welcome to ‘Buy to Let Market’, a column aimed at providing you with recent criteria and product updates within the Buy to Let lending markets.
Buy to Let Market Update: –
Virgin Money – has loosened its portfolio landlord buy-to-let policy by increasing its maximum loan to value (LTV) and cutting the aggregate rental cover requirement of the existing property portfolio. For portfolio landlords, the maximum loan to value (LTV) allowed on the existing portfolio has increased from 70 to 75 per cent. The aggregate rental cover requirement of the existing property portfolio has been cut from 145 to 135 per cent, calculated at an interest rate of five per cent.
Kensington Mortgages – has cut its rates on buy-to-let mortgage products. The reductions consist of the 70 per cent LTV two-year fix having been cut from 2.58 per cent to 2.54 per cent, and the 70 per cent LTV five-year fixed rate offer, which has been reduced from 3.68 per cent to 3.64 per cent. In addition, the lender has sliced rates on the 75 per cent LTV two-year fix from 2.73 per cent to 2.69 per cent, and the 75 per cent LTV five-year fixed product from 3.83 per cent to 3.79 per cent. The 80 per cent LTV two-year fixed rate offer has also been cut, from 3.49 per cent to 3.24 per cent, and the 80 per cent LTV five-year fix has been chopped from 4.34 per cent to 4.09 per cent. Kensington has also announced cuts of up to 0.4 per cent across its houses of multiple occupation and multi-purpose blocks BTL range, for purchase and remortgage.
The Mortgage Lender – has launched new fee assisted remortgage products for Buy to Let applicants. The fees assisted products come with: No application fee, £0 valuation fee, free standard remortgage legals (provided by Aberdein Considine conveyancers) and no telegraphic transfer fee.
Santander – has increased the maximum term and age for its buy-to-let products. The maximum age has been extended from 75 to 85, and the maximum lending term has risen from 25 years to 40 years.
The Mortgage Works – has cut rates on selected five-year fixed and portfolio buy-to-let mortgages. The lender is also introducing a new range of large portfolio products at up to 75 per cent loan to value (LTV) with a £1,995 fee including purchase and remortgage options. Rates for the two-year fixed rate deals with a £1,995 fee start at 2.84% and with no fee at 3.29%, while the equivalent five-year products start at 3.39% with a £1,995 fee and 3.74% with no fee.
Paragon Bank – has launched a new range of residential mortgage products and short-term finance products for landlords. The short-term finance products have interest rates starting from 0.45% per month. The new residential mortgage products are available via selected intermediaries including RLA Mortgages/3mc.
Accord Mortgages – has announced launched nine new 80 per cent LTV mortgage products. Highlights include an 80 per cent LTV two-year fix at 3.49 per cent. This offering has a £950 lender fee, free valuations, and £500 cashback. In addition, an 80 per cent LTV five-year fix at 3.69 per cent has been launched. This product also includes a £950 lender fee, free valuations, and £500 cashback.
Coventry for Intermediaries – has increased the number of Buy to Let mortgages allowed with the CBS Group from 3 to 5 per household. They have also introduced a new product range specifically for portfolio landlords with four or more mortgaged BTL properties.
For further information on Buy to Let mortgages both for individuals and limited companies please contact RLA Mortgages on 0161 341 0581 or visit the website www.rlamortgages.co.uk.
- Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for a specific product. The product rates are correct at the time of writing the article and are subject to change.
- This is a financial promotion and in no way should it be viewed as a personal recommendation or advice. Before a recommendation/advice can be given, you should seek independent mortgage or financial advice. RLA Mortgages is operated exclusively for The Residential Landlords Association (RLA) by 3mc, which is authorised and regulated by the Financial Conduct Authority. FCA No. 302992. The Residential Landlords Association is an Introducer Appointed Representative of 3mc (UK) Limited.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Although the FCA regulates the way the majority of mortgages are sold, in most cases it does not regulate buy to let mortgages. This means you may have less protection if things go wrong with a Buy to Let mortgage.