Finance & Tax

May Buy to Let Market Update

Doug Hall
Written by Doug Hall

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 reduced the stress rate on its 5 year fixed rate Buy to Let loans to 5 per cent. The rate was previously 5.24 per cent. Virgin’s other Buy to Let mortgages will all have stress rates of 5.5 per cent. The lender has also reduced the stress rate for straight balance swap cases from 5.99 per cent to 5.5 per cent. Additionally, Virgin will consider using landlords’ personal income to cover rent shortfalls between 100 and 145 per cent of the mortgage payment. This will be calculated at an interest rate of 5.5 per cent. For personal income to be used, Virgin requires a minimum income requirement of £50,000 excluding income received from Buy to Let properties.

Landbay – has launched a range of 5 year fixed rate exclusive products available through selected mortgage intermediaries including 3mc/RLA Mortgages. The products are available for standard residential properties, small HMO/Multi units and larger HMO/Multi units with rates starting from 3.49%.

Leeds Building Society – has launched a range of 5 year fixed rates available up to 60% Loan to Value with rates starting from 2.19%

The Mortgage Lender – An established specialist residential lender has launched into the specialist Buy to Let market with products and criteria suitable for most landlords including portfolio landlords. The range include HMO’s, multi units on one title and are available to both individuals and limited companies. Rates start from 2.99%.

Lendinvest – has reduced their rates on the 80% Loan to Value range with rates now starting from 3.69%. They have also launched an exclusive 5 year fixed rate product available through selected intermediaries including 3mc/RLA Mortgages.

Kensington Mortgages – has launched into the limited company Buy to Let market with a range of products available to 80% Loan to Value and rates starting from 3.14%. The limited company range is also available for HMO’s and multi units one title through selected intermediaries including 3mc/RLA Mortgages.

Foundation Homeloans – has launched a range of 5 year fixed rate exclusive products available through selected mortgage intermediaries including 3mc/RLA Mortgages. The products are available for standard residential properties for both individuals and limited companies. Rates start from 3.34% with rental stressed at the pay rate.

Aldermore Bank – has reduced rates for limited company landlords and reduced rates for multi units on one title and HMO’s. They have also launched new remortgage only products with no product, valuation or legal fees.

The Mortgage Works – has reintroduced 80% Loan to Value products for standard Buy to Let properties and increased its loan to value for HMO’s from 65% to 75% Loan to Value.

Paragon Bank – has launched a limited edition 2 and 5 year fixed rate product range for portfolio landlords with different options including a free valuation and cashbacks of up to £500.

Accord Mortgages – has added an additional £250 cash back to 29 Buy to Let remortgage products and has reduced rates by up to 0.18% on 6 Buy to Let purchase products.

For further information on Buy to Let mortgages both for individuals and limited companies please contact RLA Mortgages on 0844 858 4420 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.

About the author

Doug Hall

Doug Hall

Doug Hall is a director of 3mc; a specialist mortgage provider within the buy-to-let sector. 3mc have been established for over 21 years working with lenders, mortgage intermediaries and the Residential Landlords Association (RLA) providing all types of buy-to-let mortgage solutions.

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